Amazing times indeed.
As I pointed out yday, the house did pass the bill with 263-171 vote. Most Democrats were in favor (172 yeas to 63 nays), while a slighter majority of Republicans voted against (91 yeas to 108 nays). however, it didnt come as a big surprise for the market. DJI traded as high as +300 during the first half of the day, before the bill was put on for a vote, but soon after the outcome, it began its fall, ending about -157 points for the day.
WFC (WellsFargo), a bank that I personally liked for its conservative loan portfolio, made a bid for Wachovia for $7 a share ($15 Bn stock swap), without any govt intervention. Citi made a statement demanding Wachovia and WFC to terminate the agreement. Citi in the past had made a bid for Wachovia's banking operations for 2.1 Bn Citi stock, and govt intervention. Well, watch out for the news of Citi matching WFC's bid..
Banks’ discount window borrowings averaged $367.80 billion per day in the week ended October 1, nearly double the previous record daily average of $187.75 billion last week. An outstanding figure, reiterating the fact that the inter-bank lending market is frozen and does the commercial papaer market.. The banks have no place to borrow money from to meet the overnight capital requirements other than Fed.
*in complete post*
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