Wachovia’s 8 million Loan to the Republican Party: Blackmail Money?
So, Ari’s outraged at Wachovia lending the RNC 8 million dollars to the NRCC. Not unreasonable. But here’s my take. The FDIC arranges a takeover of parts of Wachovia by Citigroup, for $1/share and some FDIC money. They plan to chop the company up. Then Wells Fargo makes an offer for Wachovia at $7/share, or 15 billion and plans to keep substantially the entire company, and want no FDIC money.
The FDIC objects and starts trying to stop the Wachovia/Wells Fargo deal even though it’s a better deal for taxpayers, for the employees and for the shareholders. Citigroup goes to court and tries to stop the deal.
Eventually Citi and the FDIC give up and let the merger go ahead. Right after that Wachovia loans 8 million to the NRCC.
I suppose that’s possible.