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Et Tu, Brute? The Downfall Of Wachovia Bank And The Proper Roll Of The Federal Deposit Insurance Corporation In Providing Open Bank Assistance, Angelo M. Metaxatos

Angelo Metaxatos

In the autumn of 2008, our country’s banking system, crippled by risky lending practices and over-leveraging, was teetering on the precipice of widespread failure. During this period, the Federal Deposit Insurance Corporation (FDIC) played a crucial role in assisting some banks, and acting as a receiver with others. When Wachovia Bank, one of our country’s largest financial institutions, was in danger of failing at the peak of the crisis, the FDIC concluded they were “too big to fail” and took the extraordinary step of providing open bank assistance. When, as a result of this assistance, Citigroup offered to purchase Wachovia …