On May 6, 2010, the Arrowflinger caught up with Ms. Sheila Bair, then Chairwoman of the Federal Deposit Insurance Corporation, on the Washington Journal. Here is his last word. Since that interview, Wells Fargo, who had the misfortune to be saddled with the carcass of Wachovia, has also had to settle litigation involving mortgage fraud allegations for $590 million and Collateralized Debt Obligations for $11 million, without admitting guilt – of course! There has been a settlement with another bank for $100 million.
Closer to home, Wachovia had an enormous investor base around Augusta, Georgia because of a series of bank acquisitions using Wachovia or predecessor First Union’s stock. Wachovia stock went from $57 to less than $2 before the failing bank was rolled into Wells Fargo. Other national banks saw stock prices plunge. Since many prominent area families were so heavily invested, one of the old family patriarchs has been heard to say that the fall of Wachovia and others swept $1 billion out of Augusta. A cynic would say this is why, now more than ever, it is critical for citizens to keep vigilant, lest they find themselves making up the losses by political actions.
Now the Last Word, followed by the C-Span clip of the Bair Interview.
Here is the C-Span clip from May 6, 2010.
https://www.c-span.org/video/?314261-3/sheila-bair-dodd-frank-financial-regulation-law