American Thinker: How allies of George Soros helped bring down Wachovia Bank

American Thinker (9/29/08)

How allies of George Soros helped bring down Wachovia Bank

Wachovia Bank, a major institution, has seen its stock plummet and its continued viability called into question, as the nation’s financial crisis muddles forward. [Update: shortly after publication of this article, Citigroup agreed to purchase Wachovia’s banking operations in a deal facilitated by the FDIC.]

Largely ignored in this crisis is the key role played by Herbert and Marion Sandler, founders of Golden West Financial (GDW), one of the largest savings and loans in the nation. Wachovia purchased GDW for $24 billion dollars in 2006. This was one of the worst merger and acquisition deals of all time for the buyer, and remarkably excellent timing on the part of the seller. In essence, Wachovia bought a financial time bomb ticking away, one that exploded this year, bringing down yet another former financial titan and further wrecking Wall Street. [Update: see this commentary from Bllomberg on the role of GDW in the fall of Wachovia.]
Maybe the Sandlers are helping their political ally George Soros, a hedge fund manager who runs an offshore fund whose investors may well include some of the world’s wealthiest and most anti-American petrocats. Shielded from scrutiny by offshore operations, the names of Soros’s investors are a closely-guarded secret. But perhaps more than a few of them would look askance at expedited development of our own energy resources. We would be less dependent on petrodollar rich abroad, and the price of oil and gas would weaken, should domestic energy resources like the Marcellus Shale be developed.

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