Wachovia experienced $5 billion run on deposits

Wachovia experienced $5 billion run on deposits

www.ajc.com

CHARLOTTE, N.C. — Wachovia Corp. lost $5 billion in deposits on Sept. 26 in a “silent run” on the Charlotte bank, leading regulators to tell Wachovia that it would be shut down within days if it were not acquired, according to court filings made by Citigroup on Friday.

(visit the link for the full news article)

Ok I know there have been rumors floating around about these silent bank runs and here is where I think we have a problem.
This article is from the Atlanta Journal and Constitution, it came out today October 10th about a silent run that happened in North Carolina on Sept. 26th.
How many of these "silent runs" are happening?
What kind of $$$ amounts are we talking?
Why is it taking so long to inform the public?
I know we want to stave off panic but I sure as hell don't want to be the last in line.
It is time to remove the veils and get the whole story here.

www.ajc.com
(visit the link for the full news article)

I want to take my money out of the bank but what do you do with several grand in cash? Any ideas?

It's not fair that bank money is just bits on a database but individuals don't get the same luxury!

[edit on 10-10-2008 by k-string]

And the only reason we are even getting the straight story now is because Citigroup had to share their findings.
What a mess!

reply to post by k-string


Other than put 1/2 under your mattress and the other half preparing, I don't know.
We have filled up our gas tanks and stored some gas, we buy canned goods and water, first aid supplies, etc. etc. as an investment.
Not as much an Armageddon investment as a stave off inflation investment.
That money may do you no good if it is worth nothing, you should invest in necessities now just in case.

Crap....I bank with Wachovia....ir WalkAllOverYa as they are better known.

I never actually considered a bank of that magnitude actually just being shut down like that though.

I would like to ask a guestion on this topic without highjacking this thread.
If they bought Wachovia at 10 cents on the dollar,
who lost the other 90 cents?How does that interact with credit ?

I know I am simple...but need a resonable explaination , plz!

Hey wassup SEE.

That article is weird. It mentions the bank run but then goes into describe the CITI/Wells buyout of Wachovia. But the article never said how the bank run tied into the dealings, and whether that could have affected the intitial deal with CITI. And what exactly is a "silent" bank run? Selloff of stock as opposed to people withdrawing cash?

reply to post by k-string



work out what you would ordinarilly spend over 3 months on things like coffee, tea, cans , dried goods, toilet roll, toiletries, petrol, and various other stuff then use your cash to but in advance...think of it as doing a quarterly shop instead of a weekly shop. You will use all these things anyway over time and can replensih them as you go along so that you are always a few months ahead of the game with supplies.
Then keep the rest of the cash at home somewhere safe.

I'm not very savvy when it comes to finance and banks, etc...but whoever knows what they're talking about, should I take my money out of the bank because I live in NC and bank with Wachovia? I don't want to do anything drastic without understanding the situation, but after reading this I am a little worried. Any help is greatly appreciated!

reply to post by Ex


Mostly in leverage and shareholder value are the losers.

The account's with less than $250,000 are really not affected much.


AB1

reply to post by Alexander_Supertramp


No, you really shouldn't 'run the bank'. Your money will still be there.

However, given that, if you think you WONT have enough cash to last you a couple of days in the EVENT that FDIC takes over or a buyout, then you should at least have enough for a couple days until they get their books sorted out and re-open the ATMS and teller windows.


AB1

Wachovia had been calling in interest only loans. This pissed off customers, money withdrawn, big money.
Charlotte,NC

That is nothing to the 19.5 billion WaMu lost in a matter of a week from silent bank runs. Silent bank runs are the systematic loss of funds from people pulling out. Its not a paniced, everyones running to the bank, pull out, but more of a calm "Give me my money" type deal.

Originally posted by PokeyJoe
Crap....I bank with Wachovia....ir WalkAllOverYa as they are better known.

Ain't that the darn truth!! I began to distrust them when dealing with a local branch that tried to keep the money my late Father had in several CDs. I finally came to believe they had cashed them in for themselves, perhaps thinking he had no heirs and no one would come looking . It certainly seemed like they had to stall till they had time to replace the money when it was called for.....


We have way less in our accounts than the amount the FDIC insures for.....hopefully we will not find that we have foolishly trusted them as well.

I would not want to contribute to the panic, but I would hate even more to be caught with my drawers down.....

reply to post by cosmicpixie


This is slightly off-topic. But I would like to thank Cosmic and many of the other posters, who over the last few weeks have (and continue to) give out such fantastic advice to others here on the forum. It is greatly appreciated by many I'm sure. And I certainly do appreciate it.
A tip of the hat, and pat on the back to you all.

In a time when thank you's are in short supply - thank you!