Virtual receivorship for Wachovia?

MarketWatch says this about Wachovia: "A case could be made that Charlotte, N.C.-based Wachovia, where loan defaults have jumped nearly five fold, isn't much better off than the failed lender." The failed lender being referred to is IndyMac. The column wonders whether the government had grounds to step in and bail out the bank. Well, it doesn't look like the Wachovia is in that much trouble, but going forward, it doesn't seem to have a reliable source of capital now that its dividend is all but gone. It's unclear what assets it can sell, though it has retained Goldman Sachs to look for value. All in all, the idea that Wachovia--the fourth largest U.S. bank--could fail isn't entirely out of the question, but it still seems remote as of now. However, things may get worse soon. Maybe that's why they the board hired a regulator.  

For more:
- here's the MarketWatch column

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