No. of Recommendations: 1
Taken directly from their Code of Ethics, Wachovia’s Values Begin:
(1)Integrity:

"Trust and honesty are essential to us. We do what we say we will do. We communicate with candor. We admit our mistakes. We are people who can be trusted."

Wachovia had executed an 'Exclusivity Agreement' which, if breached, could only be repaired through 'Specific Performance". In this case, specific performance was defined as Citi purchasing Wachovia. It's fairly clear in terms of both the contractual breach and the Ethical Code Breach.

So, what happens? Well, most likely, Wachovia will rationalize - "Ethics be damned - we have a reason - and it's for the greater good" (Paraphrasing). This is how it starts - and this is how we got here. Mr. Steel made Mr. Pundit look like a fool. This could negatively effect the remaining Citicorpers.

While negotiating with Citi, Wells was also secretly being engaged - distinctly not allowed per the agreement. So, what was the consideration given to Wachovia by Citi in exchange for the executed exclusivity agreement? With cooperation of the FDIC, Wachovia got from Citi a lifeline of liquidity, necessary to stay open.

On Tuesday of this past week, a ruling was made, which allowed the full utilization os tax losses. This was a great feature to Wells and others who might be purchasers.

At what point do we all say - wait that's not the deal. We are on the verge of financial calamity because of greed, avarice, stupidity, fraud and cowardice. So, what is this? - A venial sin? 2 hail Mary's and an Our Father? Or, is it something more? Where the first C in the 5 C's of Credit is Character, how do we explain this and proclaim our disdain for Sub Prime? How do we get back to doing the right thing?
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