Is this smart? Or is this hitting on a drunk girl at a kegger?
In other words, is Wachovia doing something that makes sense in the full light of day, with everyone thinking straight — or will the parties almost immediately regret such a hookup? All I know is that previous notions of value are out the window so it is impossible to say what would be a good price point for such a deal. It seems to me you would only do such a deal in this environment if all the alternatives were much, much worse. There landmines lurking on almost everyone’s balance sheet right now.
But maybe Bob Steel already has assurances from the Treasury and the Fed he’ll have their help in dealing with any surprises, especially if a Wachovia move keeps Morgan out of the hands of the Chinese. Interesting times we live in, huh?
