Can Wachovia survive on its own?

Wachovia's new CEO, Robert Steel, has roots at Goldman Sachs, where he was vice chairman before moving into public service at the Treasury Department. His corporate pedigree has only stoked the view that perhaps Goldman Sachs is interested in buying the bank, despite its woes. The big issue for Wachovia is capital. A Goldman Sachs analyst has noted that nearly half of the $8 billion of capital raised in April has already "evaporated," according to Seeking Alpha. This, of course, endangers the dividend, and will likely force some asset sales; and that may not be enough. Any buyer will have to be convinced the worst is over and that the Golden West disaster has been worked through. My sense is that the Goldman Sachs rumor is mere wishful thinking.  

For more:
- here's the Seeking Alpha item
- Wachovia's stock hits 17-year low. Article 
- more on new Wachovia CEO. Article
- more on the bank's big writedown. Article

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