Tuesday, February 17, 2009

As The World Turns

I thought this was must viewing as  60 Minutes took a look at one piece of the foreclosure meltdown. 

The story focuses on a local East Bay company, World Saving. World was a small savings and loan in the San Francisco Bay area when it was purchased in 1963 for $4 million by Herbert and Marion Sandler and it was sold at the top of the market.

Golden West, which operated branches under the name World Savings Bank, was the second largest savings and loan in the United Stateswhen it was acquired by Wachovia. 60 Minutes makes the case that the collapse of Wachovia was in part do to World's lending practices, a loan product called  "Pick-A-Pay." The fall of Wachovia led it to be acquired by Wells Fargo, which in turn caused Wells to apply for TARP funds. A big mess.

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