Robert Steel - "Iron Man" or Irony Man

Now that Wachovia's over, all we're left with is the shouting. And shouting about Robert Steel has begun, here from Cramer: Wall of Shame: Wachovia CEO Bob Steel and IHT's What Goes Before A Fall? On Wall Street, Reassurance.

I remember when the Charlotte Observer came out with lots of positive writeups of Bob Steel, (former) CEO of (former) Wachovia. This was my favorite hyperbole: Experienced, calming and in control, he's ‘Iron Man'

Have Wachovians found their hero? Many are worried, but they're not panicking, say my peeps who peep at The Jukebox Building. The main reason? Bob “Iron Man” Steel, is a “very experienced, calming and in-control force during a rocky time” says an insider. Iron Man held a reassuring call with senior leaders Tuesday, I'm told. But can his mettle address the leaden stock? Meanwhile, many wonder about their long-lost “kin.” What is Mr. Thompson up to?

I'd been skeptical of Steel as a savior simply because I wasn't convinced Wachovia could have been saved as a stand-alone bank by the time he'd arrived on the scene (even housewives can do some research). Events were too far gone. And he didn't have the makings of a hero to me; in fact he seemed quite slippery. See here and here.

At the advice of a reader, I probed a little more into Steel's past career, as this was never really properly explored by our Charlotte media -- mentioned yes, explored no. Here's what I found.

The Path to Wachovia: Let's Go to the Videotape

Steel's job as the Under Secretary for Domestic Finance at the Department of the Treasury was to report to, advise, and assist the Secretary of the Treasury and the Deputy Secretary of the Treasury on the issues of domestic finance, fiscal policy, fiscal operations, government assets, government liabilities, and other related economic and fiscal matters.

How'd he do: Here are his comments on his decision to not intervene in the monoline insurance capital crisis:

It's a ''private market-oriented situation,'' he said, referring to attempts by banks to work out plans to capitalize companies such as Ambac Financial Group Inc. that insure municipal and asset-backed bonds.

My comment: Oops!

I love this one too: “private pools of capital—which include venture capital, private equity, and hedge funds—have helped make us the world’s leading financial innovator.” The creativity, innovation and entrepreneurship that our regulatory system allows private pools of capital, have kept our capital markets the most competitive in the world, and in turn has created new jobs and opportunities, helped new businesses begin and existing businesses expand.

My comment: No regulation for dark pools of capital is great! Oops again!

Of course, when Steel was at the Treasury, he was also the chairman of the Board at Duke University. The Washington Post contended in Treasury Undersecretary's Dual Roles Raise Questions that it was ethically-challenging to hold these these two posts simultaneously.

(My comment - Conflict of interest...hmmm!?)

The Goldman Years: Batman and Robin Time

And then there's his time as a legendary executive at Goldman Sachs which got him into Treasury in the first place. At Goldman, he was was a Vice Chairman and a "Capital Markets Guy" responsible for the firm's capital markets and extensively involved in privatization and capital raising efforts. It is here of course, where he met Hank Paulson and they became lasting buddies -- they really were called "Batman and Robin."

Conclusion

I don't see a legacy of a proactive and insightful financial leader. I do see very connected insider who's had his fingerprints all over some of the biggest US financial problems -- many unresolved and festering still. I'm not blaming it all on him, but come on, he was just in Treasury's capital markets epicenter, charged with creating the Super SIV (it failed) and an enhanced regulatory structure for Fannie and Freddie Mac (R.I.P.). My comment: Triple and Quadruple Oops!

I lay this all out as I read today in our Observer, "Ex-CEO At Fault for Bank's Fate." Ken Thompson is thrown under the bus. He put Wachovia on the national map, but did make the grave error in purchasing Golden West and thus sealed the eventual end of Wachovia. When Thompson was fired by the Wachovia's Board, its stock was trading at $22.80.

Did Steel attempt to sell Wachovia at a Merrill Lynch-style, discount before Washington Mutual collapsed? I don't know. We do know there was a "bid" by Wachovia for Morgan Stanley. (How exactly would that have happened? Unsuccessful bluff, more like it.)

Ultimately, Wachovia was purchased by Citigroup for $2.16 billion or roughly $3 a share. What a travesty of a sale price.

My comment - For Charlotte, NC a big and final "Oops." And advice for Steel's next employer, Beware!

Everyone Take a Deep Breath

As the markets drop and Wachovia's disappearance has elevated anxieties about the future of our financial system, please keep this prespective from Safehaven.com's Haste Makes Waste in mind:

The problem with trying to legislate in the middle of a revolution is that you aren't sure whether you are governing the world that is being destroyed or the one that is coming into being. There can be little question that the Wall Street that existed at the beginning of this year is no longer the industry that Congress is seeking to rescue from its own excesses. The financial world has been permanently altered by the collapse of the debt bubble that inexorably
built up over the past three decades. Now Congress is trying to design a rescue plan for a world whose shape is highly contingent and unstable. Such an undertaking requires more than two weeks of work.

Conventional thinking tells us that the government must do something to stabilize the markets immediately, and that doing something is better than doing nothing. Once again, conventional thinking is wrong. Congress would be much better advised to take the extra few days or week it would take to structure a plan that the world is going to have to live with for a very long time.

As we were completing this newsletter, the House of Representatives voted down the emergency package and the financial markets are panicking. Such panic is unwarranted. The world should take a deep breath and consider whether defeat of a deeply flawed bill should be treated as a catastrophe or a rallying cry to develop a better plan that addressed the underlying issues that need to be fixed.

Paulson Bailout Vote - Epic Fail - UPDATED

205 v 228.
Wow. Don't really know what say here. They've moved on to voting about minting commemorative coins now. For serious. According to the Times House leadership is planning a second attempt to pass the bill, though Steve Liesman at CNBC is saying that there's no possibility it will happen today. BTW - Sue Myrick voted against the Bailout; I suppose I will have to vote for her now.

So now go fill your gas tank, fill your food pantry and withdraw some cash; prepare for the financial Armageddon predicted by Paulson and Bush. And Congress, you can start afresh crafting a real financial rescue plan.

3:21 pm Update - Democrats and Chicken Littles -- You've Been Punked (but there is still more than 30 minutes left on trading day). See Clusterstock.com - Market To Feds: Your Bailout Wouldn't Have Worked Anyway

More on the Farce Bailout - QCers Call Your Reps - UPDATED

Are Taxpayers Actually Expecting a Profit on the Bailout?

A hurricane of "happy talk" has swept through the Mainstream Media as everyone from President Bush to Bill Gross is talking up the expectation that not only will the bailout eventually cost taxpayers nothing--it will turn a big profit! Will greed drive the American to accept this proposal?

Read Oftwominds.com on the proposed bailout which is premised on this fantasy is a sham.

Yes, things are going to get epically bad (with or without this bailout), but this bill doesn't ultimately relieve any of the underlying causes of the financial meltdown. And yes, this proposal is not the only way to recapitalize our troubled financials.

Also, see Clusterstock.com on Analyzing The Bailout. The "modifications" to Paulson's bill are only cosmetic. Yes, most of our representatives are clueless. Is it any surprise that Congresspeople elected for their ability to clear brush or deliver sound bites with a photogenic smile are about to cast one of the most important votes of their careers without a clue about what they're voting for? Someone said that "The best argument against democracy is a five minute conversation with the average voter". The American corollary to that adds a 5 minute conversation with the average elected representative...

So make it easy for them: Call your Representative and Senators Dole and Burr and tell them NOT THIS BAILOUT PLAN.

9/30 1pm update - Congress "Debate Bailout" - Team "We Hafta" vs. Team "Nuh-uh." I fully think that Team We Hafta will win. What a spectacle. This will be disasterous.

Citichovia

Citigroup Inc. to Acquire Banking Operations of Wachovia
FDIC, Federal Reserve and Treasury Agree to Provide Open Bank Assistance to Protect Depositors

FOR IMMEDIATE RELEASESeptember 29, 2008 Media Contact:Andrew Gray (202) 898-7192angray@fdic.gov

Citigroup Inc. will acquire the banking operations of Wachovia Corporation; Charlotte, North Carolina, in a transaction facilitated by the Federal Deposit Insurance Corporation and concurred with by the Board of Governors of the Federal Reserve and the Secretary of the Treasury in consultation with the President. All depositors are fully protected and there is expected to be no cost to the Deposit Insurance Fund. Wachovia did not fail; rather, it is to be acquired by Citigroup Inc. on an open bank basis with assistance from the FDIC.

“For Wachovia customers, today’s action will ensure seamless continuity of service from their bank and full protection for all of their deposits.” said FDIC Chairman Sheila C. Bair. “There will be no interruption in services and bank customers should expect business as usual.

"Citigroup Inc. will acquire the bulk of Wachovia’s assets and liabilities, including five depository institutions and assume senior and subordinated debt of Wachovia Corp. Wachovia Corporation will continue to own AG Edwards and Evergreen. The FDIC has entered into a loss sharing arrangement on a pre-identified pool of loans. Under the agreement, Citigroup Inc. will absorb up to $42 billion of losses on a $312 billion pool of loans.

The FDIC will absorb losses beyond that. Citigroup has granted the FDIC $12 billion in preferred stock and warrants to compensate the FDIC for bearing this risk.In consultation with the President, the Secretary of the Treasury on the recommendation of the Federal Reserve and FDIC determined that open bank assistance was necessary to avoid serious adverse effects on economic conditions and financial stability.

Per Dealbreaker.com: The FDIC insists that Wachovia didn't fail. No really. They swear. So the fact that it is the FDIC that is making the announcement that Citi is buying the banking operations of Wachovia is really just coincidence. Seriously. See, we call it "open bank assistance." As you can see that takes the emphasis off of negative and dangerous words like "failure" and refocusing attention on "open." They were considering a "running bank rescue," but that was before Sheila Bair pointed out the fact that a "rescue" implies distress and "running" sounds a lot like the bank executives are fleeing the jurisdiction.

My comment: The banking "club" as it exists now: GS, C, BAC and JPM.

QCers Express Yourself Re the Bailout Plan

Ok, this isn't just a Queen City issue; it affects all Americans.

Call Your Member of Congress and politely suggest that giving Hank Paulson 700 billion dollars is insane. Use "The Google" to find their numbers, or call the House switchboard at: (202) 224-3121.

Many are saying that this proposal is socialist. It is most definitely not socialist. Paulson and the Fed are NOT discussing egalitarian economic rights for all; they are NOT promoting an economic system that redistributes corporate profits to all citizens. No, this plan is closer to economic fascism (corporatism) -- that is, financial entities operating underand profiting from corporate welfare. This plan will forever change the face of our economic and political systems in one swoop.

Read more on why this plan is a travesty at Naked Capitalism: "Why You Should Hate The Treasury Bailout Proposal."

Update 9/23 - Bank of America Says "Paulson Plan Benefits Mostly Goldman, Morgan" . Wonder how Wachovia views the bailout?

More on Obama's Visit to the QC

The Observer liveblogs Barack Obama in Charlotte: Live updates. Reporter Jim Morrill describes visit as, "Something important and historic. "

NY Post Attacks Wachovia and Steel

"The issue of Wachovia's loan portfolio strength was brought to the fore last week when its shares shot up on word that Morgan Stanley was weighing a deal to buy the bank. But Morgan bankers, once they kick the tires, will surely find out that a couple of the tires may be flat."

Why is the New York Post so negative on Wachovia and CEO Steel? Hmmm. Are you getting the feeling that MS + WB = NOT HAPPENING. Or maybe that doesn't even matter anymore in our Post-Bailout World.

Update 9/21 - Morgan Stanley snubs Wachovia

Obama's Charlotte Speech on the Bank Bailout

Today here in Banktown, USA, over 20,000 rally attendees heard Barack Obama respond to the "Bank Bailout Plan."

"Even if the Treasury recovers some or most of its investment over time, this initial outlay of up to $700 billion is sobering. And in return for their support, the American people must be assured that the deal reflects some basic principles."

No blank check. If we grant the Treasury broad authority to address the immediate crisis, we must insist on independent accountability and oversight. Given the breach of trust we have seen and the magnitude of the taxpayer money involved, there can be no blank check.

Rescue requires mutual responsibility. As taxpayers are asked to take extraordinary steps to protect our financial system, it is only appropriate to expect those institutions that benefit to help protect American homeowners and the American economy. We cannot underwrite continued irresponsibility, where CEOs cash in and our regulators look the other way. We cannot abet and reward the unconscionable practices that triggered this crisis. We have to end them.

Taxpayers should be protected. This should not be a handout to Wall Street. It should be structured in a way that maximizes the ability of taxpayers to recoup their investment. Going forward, we need to make sure that the institutions that benefit from financial insurance also bear the cost of that insurance.

Help homeowners stay in their homes. This crisis started with homeowners and they bear the brunt of the nearly unprecedented collapse in housing prices. We cannot have a plan for Wall Street banks that does not help homeowners stay in their homes and help distressed communities.

A global response. As I said on Friday, this is a global financial crisis and it requires a global solution. The United States must lead, but we must also insist that other nations, who have a huge stake in the outcome, join us in helping to secure the financial markets.

Main Street, not just Wall Street. The American people need to know that we feel as great a sense of urgency about the emergency on Main Street as we do the emergency on Wall Street. That is why I call on Senator McCain, President Bush, Republicans and Democrats to join me in supporting an emergency economic plan for working families – a plan that would help folks cope with rising gas and food prices, save one million jobs through rebuilding our schools and roads, help states and cities avoid painful budget cuts and tax increases, help homeowners stay in their homes, and provide retooling assistance to help ensure that the fuel-efficient cars of the future are built in America.

Build a regulatory structure for the 21st Century. While there is not time in a week to remake our regulatory structure to prevent abuses in the future, we should commit ourselves to the kind of reforms I have been advocating for several years. We need new rules of the road for the 21st Century economy, together with the means and willingness to enforce them.

Read Obama's prepared remarks at Politico.
Read about the proposed bailout at Calculated Risk.

P.S: I will post photos of this event -- albeit the event from outside the barricades looking in. The streets of Charlotte were mobbed with people -- young, old, families, couples, and college students of all races, colors and compositions; I've never enjoyed waiting in line so much.

P.P.S: I'd also venture to guess that the media's "20,000 attendees" doesn't include those of us that couldn't get in. And there were alot of us.

Morgan Stachovia?

The Times reports that Morgan Stanley is considering a merger with Wachovia. Discussions are purely preliminary.

New Banking Rule - There Are No Rules

From the Financial Times article, "Wall Street Crisis Deepens"

The Federal Reserve said it was making it easier for financial institutions to access Fed liquidity by easing terms on its borrowing facilities and accepting a much wider range of assets as collateral. The Fed meets to decide on interest rates on Tuesday. It widened the set of assets eligible as collateral for loans of Treasuries to include all investment grade paper, and raised the size of these Treasury loans to $200bn.

The Fed also suspended rules that prohibit banks from using deposits to fund their investment banking subsidiaries.

Was this the quid pro quo for Band of America buying Merrill? If so, repercussions will extend beyond BofA. This is a time when the federal authorities need to be vigilant, not lax about banks taking risk with depositors' funds.

P.S. Ken Lewis on TV right now telling everyone that everything will be great (BofA headquarters will remain in Charlotte). His eyes are so dilated; he looks scared.

BankofAmerillLynch - Shotgun Marriage

I'm not even sure where to begin as the news this weekend on Bank of America is simply stunning. So I give you Mish's Global Economic Analysis Another Shotgun Marriage: Bank of America and Merrill Lynch:

It's all over for Lehman. Action in the main poker room action has stopped. None of the players wants to bet a penny on the Lehman pot. Indeed, Lehman Prepares For Bankruptcy as Buyers Withdraw.This is a realization the pot is worthless. Nonetheless, expect to hear clowns screaming about "naked shorts" wrecking Lehman just as they screamed the same nonsense about Bear Stearns.

Action has now shifted to side games as AIG Struggles To Stay Alive, Begs Fed For Cash.In another side game at least as big as the main game, Bank of America Agrees to Buy Merrill Lynch for $44 Billion.

Bank of America has struck a $44 billion deal to buy Merrill Lynch, a merger that will unite the nation's largest consumer bank with one of its most celebrated investment banking firms. Both boards have approved the deal and it is now being reviewed by lawyers, the sources said. Bank of America will pay about $29 for each share of Merrill Lynch stock.

A Shotgun Marriage?

I sense a shotgun wedding sponsored at gunpoint by the Fed.Without this buyout announcement Merrill Lynch would have gotten absolutely crushed tomorrow. That is absolutely certain. The closing price of Merrill Lynch was $17.05 on Friday. Mother Merrill's market cap was roughly $26 billion. Thus... Bank of America (BAC) agreed to pay $44 billion for a company that would have been worth $18 billion on Monday's open, assuming a $5 markdown on Monday to $12. Why?No one had any cash to buy Merrill other than BAC so what's the rush?

Various swap-o-rama tables are now in full swing with everyone trying to figure out who is holding what and who the counter parties are, and just what anything is worth, if indeed anything is worth anything at all.

Gasoline Panic in NC

The Charlotte Observer writes in Consumers Enraged By Gas Price Spike that "when Hurricane Ike struck the Gulf Coast, it shut down 14 oil refineries." (My comment - The Colonial Pipeline which transports fuel to the southeast and northeast regions has also been disrupted.)

The Observer goes to report:

The effects of that shutdown are being felt nationally as a fuel shortage leads to spikes in prices and runs on gasoline from Tennessee to New York. The impending gas shortage forced N.C. Gov. Mike Easley and S.C. Attorney General Henry McMaster this week to activate anti-gouging provisions. The laws prohibit companies from charging unreasonably high prices."

The news from South Carolina is even worse. Half of the 26 Midlands stations visited by The State newspaper on Saturday were either out
of fuel or out of one or more grades of gas. Station operators were
unsure when their next shipments would be delivered.

Is this irrational panic by the gas consumer? Is this a simple matter of supplier price gouging? How long will it last? Over at Mish's Global Economic Analysis, there is a good overview of this in Gasoline Shortages And Higher Prices Likely Headed Your Way . Essentially, the consumer will have no choice but to conserve gas.

Update 9/14 - Check gasbuddy.com to see latest average gas prices in the U.S. and Canada. Currently Charlotte's average is $4.141 per gallon; Knoxville has the most expensive gas at $4.847.

BofA Hearts Lehman Brothers? Updated 2x

By now, everyone knows that Bank of America is looking at buying Lehman Brothers. Back in October 2007 when Ken Lewis was quoted in the Wall Street Journal saying, “I never say never, but I’ve had all the fun I can stand in investment banking at the moment."

So what changed? Some snarky bloggers on Cityfile.com offer this: What You'll Get With Your Lehman Brothers Purchase.

I know, of course, Lewis isn't in it for another stinkin' jet. So, why pick up Lehman Brothers now, when Merrill Lynch is still hanging out there? Will BofA buy Lehman now or wait for Merrill?

9/14 Update: No Deal Reached Yet to Decide Lehman's Fate. The Fed presiding over Wall Streeters and trying to cobble together a plan. Classic "Prisoner's Dilemma" scenario.

9/14 Update 5:10 PM: From the New York Times' Dealbook:

Bank of America is in advanced talks to buy Merrill Lynch for at least $38.25 billion in stock, people briefed on the negotiations said on Sunday, as a means to preserve that investment bank while Lehman Brothers looks likely to collapse.

The move suggests a desperate effort at triage on Wall Street, as Bank of America works to shore up the likely next victim of the credit crunch. A deal, valued at between $25 a share to $30 a share, could be announced as soon as Sunday night, these people said. Merrill shares closed at $17.05 on Friday.

It appears that BofA balked at Lehman Brothers deal and is now going for the whole enchilada -- Merrill Lynch.

The Best of Charlotte 2008

Local newspaper Creative Loafing has published its 21st edition of "Best of Charlotte 2008" in the categories of City Life, Media, Consumer Culture, Arts & Leisure, Food & Drink and After Hours.

Some of the Readers' 2008 favorites:

LOCAL HERO Mayor Pat McCrory
LOCAL ZERO Nick Mackey
BEST LOCAL CHARITY Habitat for Humanity
BEST NEW SLOGAN FOR CHARLOTTE “Bank On Us”
BEST MEMBER OF LOCAL GOVERNMENT Mayor Pat McCrory
WORST MEMBER OF LOCAL GOVERNMENT Mayor Pat McCrory
PUBLIC OFFICIAL MOST IN NEED OF TASERING County Commissioner Bill James
BEST USE OF TAX MONEY Light Rail
BIGGEST WASTE OF TAX MONEY Uptown Sports Arenas
BEST LOCAL ATHLETE Carolina Panther Steve Smith
BEST NEWCOMER TO THE CHARLOTTE SCENE Charlotte Roller Girls
BEST THING TO SHOW OFF TO OUT-OF-TOWN GUESTS U.S. Natl Whitewater Center
BEST NEW BUILDING/ATTRACTION EpiCentre
MOST MISSED OLD BUILDING Charlotte Coliseum
WORST EYESORE The Arlington (aka “The Pink Building”)
BEST HOTEL The Westin
BEST MUSEUM The Mint Museum of Art
BEST PLACE TO LIVE IN CHARLOTTE Plaza Midwood
BEST PRE-GAME HANGOUT DOWNTOWN Fox and Hound Smokehouse & Tavern
WORST INTERSECTION Trade and Tryon streets
BEST FESTIVAL Festival in the Park
BEST PLACE FOR OUTDOOR EXERCISE Freedom Park
BEST PLACE TO GET BACK TO NATURE U.S. Natl Whitewater Center
BEST PLACE TO PEOPLE-WATCH SouthPark Mall
BEST GOLF COURSE Quail Hollow Country Club

Wachovia and Bank of America Doing the Right Thing

On this somber day, this report from Associated Press is distressing: Banks helped foreigners escape US taxes.

A yearlong investigation by a Senate Homeland Security and Governmental Affairs subcommittee, whose results are to be made public Thursday, found that the evasion of dividend taxes adds up to billions of dollars in revenue lost to the U.S. Treasury over the past decade.

They developed case histories involving six major investment banks: Citigroup Inc., Deutsche Bank, Lehman Brothers, Merrill Lynch & Co. Inc., Morgan Stanley and UBS.

I'm proud to see Wachovia and Bank of America NOT on this list. I'm sure these tax-evading banks won't be looking for relief from U.S. taxpayers. Yah, right?!

Will Coming Commercial Real Estate Bust Be Contained?

Banks still waterlogged from the residential mortgage bust deluge are now bracing for the next crisis. Commercial Real Estate (CRE).


On Calculated Risk, we get the primer: The CRE Bust: Quick Overview to provide proper background for Seekingalpha.com's: Bank of America: Credit Weakness Spreading to Commercial Loans.

Hmmm... Plunging commercial real estate values affecting the ability and willingness of banks to lend. Sound familiar? This is exactly the same environment that preceded the housing plunge. Transactions dried up, inventories rose, and sellers waited patiently to get their price. They never did. The winners quickly recognized conditions had changed and then bailed for whatever they could get.

If CRE turns down, prepare to see closed down retailers and restaurants, and dead malls. There are several websites documenting this trend. Here's one: deadmalls.com.

Oh, and can we all stop whinning about "lipstick on pigs" and begin addressing some real problems?

Wachovia NOT on List of "Problem Banks"

Since I always seem to post bad news on Wachoiva, here's some good news from SeekingAlpha.com:

The FDIC won't say which banks are in its problem list. However, based on the
total assets of these institutions, we know which banks are NOT on the list. The
total assets is $78 billion with $32 billion coming from IndyMac Bank which
failed in July. That leaves $46 billion for the other problem banks. Below are
banks that can't be on the list since their assets are over $46 billion.
However, it should be noted that IndyMac failed and it was not on the problem
list at the end of the first quarter.

Wachovia: $671 billion (FDIC source)
WaMu: $307 billion (FDIC source)
National City: $151 billion (FDIC source)
KeyBank: $98 billion (FDIC source)

The following banks are under $46 billion in
assets, however, with a total of 117 banks on the problem list, there are
probably not too many banks with assets between $10 to $20 billion on the
list.

Zions: $20.2 billion (FDIC source)
Flagstar: $14.6 billion (FDIC source)
BankUnited: $14.2 billion (FDIC source)
Corus: $9.0 billion (FDIC source)

McCain Surging in NC - Updated 9/10

Just posted by Drudge from abc11.com: McCain leaps ahead in NC. I'll post more on this after I can digest. Is this an outlier or a taste of what's to come?

9/10/08 Update: New PPP poll of NC likely voters is out this morning: McCain at 48% and Obama at 44%. Which poll is a more reflective snapshot of the Tar Heel state? We'll see. However, McCain continues to buy TV air time in NC markets. If the campaign truly thought it was a +20 leader, why would it spend money defending its supposedly solid lead.

Also in the poll: Hagen (D) and Purdue (D) are barely leading in their respective races.

For Wachovia, Rumors and Bad Press Persist

The Daily Round-up on Wachovia news:

From Triangle Business Report: Wachovia may tap Carlyle Group exec as CFO

From SeekingAlpha.com: Is Wachovia the Worst Run Bank in America?

Meanwhile, it's "PhonyMae and FraudyMac Day." And the markets love it! To the moon I say!

Charlotte PUMAs Embrace McCain Nation & Sarah Palin

Per CharlotteFrontandCenter.com, there will be a gathering of Democrats and independents in Charlotte, N.C. this Thursday, Sept.11, 2008 at Caribou Coffee, 7510 Pineville-Matthews Rd. Beginning at 6:30pm and ending at (?) . What this small band of former Hillary Clinton supporters, now McCain/Palin converts plan to organize is not clear. A voter drive? A protest? Why they are not inviting Republicans to their "Country First" gatherings is also not clear. After all they support the McCain/Palin presidential ticket. This "squeaky-little-group-that-must-oiled" doesn't really want to fold into the Republicans; they want to stand out in their doomed quest.

I admit to being fascinated by this group of women whose reasoning is as convoluted as a pretzel. These are ardent Hillary supporters, who refuse to endorse Barack Obama, even after she's endorsed him; they relate to Sarah Palin, who is 180-degrees apart from Clinton on the issues and are supporting John McCain/Palin.

Look for more coverage on this group because this election cycle is proving that the "fringe-ier" the better.

* Warning - In honor of Sarah Palin, Frontandcenter.com plays that "Northern Exposure" song on a loop and it skips badly.

Wachovia Takeover of....the United Way of Central Carolinas

I love it when the topics of my blog converge. Today it's two struggling QC entities: the United Way and Wachovia. We learn from the Observer that "United Way board chairman Graham Denton resigns." The Observer notes, "The pay controversy at the United Way of Central Carolinas has claimed another agency leader: Board chairman Graham Denton resigned today. Carlos Evans, a Wachovia executive, has taken his place." This comes on the heels of Mac Everett, a former Wachovia executive, stepping into former president Gloria King's position and a $20,000 monthly salary.

Why is Wachovia doubling down on the United Way of Carolinas? What ever happened to sharing the responsibility of the United Way with others (like Bank of America, Duke Power, hello?). Wachovia has enough on its plate trying to steer the helm of their own organization.

The United Way of the Carolinas is not an organization that should be saved in its current form, it needs to be overhauled. Changing its policies and infrastructure are what's required and movement in those areas would signal to donors that "change is in the air." Wouldn't it be great for Wachovia to take the lead on an overhaul at United Way. It'd be win, win for both their images. I'll be waiting for that massive overall announcement from our new United Way/Wachovia Board Chair and President (cue crickets).

(More) Crime & (Less) Punishment In the QC

Yesterday's Charlotte Observer featured a front page spread telling us everything we already knew: "Crime, and fear of it, hurt quality of life: Poll shows fewer people feel safe. City leaders should worry" and "Concern over crime grows in Charlotte: 42 percent in poll feel less safe than a year ago; confidence in CMPD is lukewarm."

This was news to nobody. How many victims of crime do you know? I know many. In my Charlotte neighborhood, we've even contracted with off-duty law enforcement officers to conduct nightly patrols. Per crimeincharlotte.com, Dilworth Residents Help Police Apprehend Burglar. Opps, UPDATE: Ernest Hill is back on the streets of Charlotte! A predictable tale of empowered residents working with the police on crime.... to no avail.

Then I see in the Observer, Police: Homeowner shoots, kills burglar: The district attorney's office will determine whether to file charges after reviewing evidence . Of the homeowner, neighbor Snow says " I just hope they don't charge him,” Snow said. “I'm sure it's something he wouldn't have done unless he felt it was necessary." (My emphasis in bold). How's that for punishing a perennial felon? Now, we're talking!

Charlotte's new police chief admirably vows to work harder on his end of this two-pronged crime issue by aiming for higher police visibility and increased community networking. Now our law and government officials just need to figure out what to do with the criminals when they get them (other than just release them).

Now I'd never advocate that homeowners should "assist" in law enforcement by shooting and killing intruders, i.e. taking the law into their own hands. But really, the district attorney needs to do more than just review filing charges on this burglered homeowner. With Charlotte's larger problem of higher crime rates by repeat felons, he should hear a screaming need to review the laws and punishments for repeat criminals.