WaMu and Wachovia Re-Inflated (For Now)
It really makes one wonder just who is providing the "air." There was a letter[pdf] from the Federal Reserve to Barclays, back in October 11, 2007, that granted Barclays direct "air" should they need it. This was covered by the Financial Times in the October 21, 2007 story titled: Barclays and RBS set up Fed back-up.So, Washington Mutual and Wachovia have now been re-inflated, like balloons, according to these recent articles:
Deflate: WaMu faces $14 billion losses, should be shorted: GS - Reuters
Inflate: WaMu's $7 billion rescue plan nearly doubles its shares - Salt Lake Tribune
Deflate: 'Moment of truth'for Wachovia - TradingMarkets
Inflate: Wachovia to get capital infusion: WSJ - Reuters
The Fed has given Barclays and RBS [Royal Bank of Scotland] permission to borrow up to $20bn and $10bn respectively.Well, maybe they're using it now. It simply amazes me that such a small group of 10 can control over 50% of each of these two companies, when there are hundreds of other institutional shareholders. Now that's power.
. . .
People close to the banks said neither had any current intention of using the facilities.
Barclays said: “This secures another potential source of funding should our U.S. clients seek it.”There also seems to be a shifting of share ownership that took place in the last half of 2007. After reviewing the significant changes in Major Holders, especially with Capital Group loading the boats with these banking stocks. Again, at the same time, it looks like Barclays and Associates have been unloading their boats. At any rate, they certainly share the common interest of seeing these two banks stay afloat, therefore the "balloon" gets re-inflated.
The most significant change has been Capital Group's sharp rise in ownership in the last six months, and interesting reductions in Barclays/Associates.
Capital Group Barclays Associates Company 12/31/07 06/30/07 12/31/07 06/30/07 Washington Mutual 29.93% 18.46% 16.26% 23.18% Wachovia 12.50% 3.18% 9.43% 12.84%
In my opinion, there's too much secrecy in both large corporate businesses and government, which both affect millions of people. It just makes it too easy for those few to lie, steal and murder.
Perhaps that's why: Sometimes The Dragon Wins
NOTE: Capital Group manages five funds that control 15.12%.
Symbol Name Of Corporation WM
Major
HoldersWashington Mutual Inc. (As of 31-Dec-2007) (As of 30-Jun-2007)
Top 10 Institutional Holders Shares 2007 Value 2006 Capital World Investors 69,730,000 8.03% $949,025,300 -.--% Capital Research Global Investors 58,868,550 6.78% $801,200,965 -.--% Brandes Investment Partners L.P. 50,201,678 5.78% $683,244,837 -.--% Barrow, Hanley Mewhinney & Strauss, Inc. (Old Mutual) 45,047,319 5.19% $613,094,011 -.--% Hotchkis & Wiley Capital Management, LLC 43,488,092 5.01% $591,872,932 -.--% Harris Financial Corp 35,158,812 4.05% $478,511,431 -.--% Franklin Resources, Inc 29,357,421 3.38% $399,554,499 -.--% Barclays Global Investors UK Holdings Ltd 29,247,762 3.37% $398,062,040 -.--% Dreman Value Management, L.L.C. 27,962,797 3.22% $380,573,667 -.--% State Street Corporation 27,442,059 3.16% $373,486,422 -.--% % of Shares Held by All Insider and 5% Owners: 0% -.--% Top 10 [1.7%] of 574 Institutional Holders Control 47.97% -.--% Percentage of Barclays and "Associates" Control 13.96% -.--%
Franklin manages a fund that controls 2.30%.
Therefore, the TOP 10 Major Holders control 65.09%,
Barclays/Associates control 16.26%, and
Capital Group controls 29.93% of Washington Mutual.
NOTE: Capital Group manages three funds that control 4.26%.
Symbol Name Of Corporation WB
Major
HoldersWachovia Corp. (As of 31-Dec-2007) (As of 30-Jun-2007)
Top 10 Institutional Holders Shares 2007 Value 2006 Dodge & Cox Inc 96,029,081 5.05% $3,651,985,950 -.--% Capital Research And Management Company 70,526,327 3.71% $3,536,895,299 -.--% State Street Corporation 67,987,446 3.58% $2,585,562,571 -.--% Barclays Global Investors UK Holdings Ltd 64,214,917 3.38% $2,442,093,293 -.--% Vanguard Group, Inc. (The) 58,391,684 3.07% $2,220,635,742 -.--% Capital Research Global Investors 55,698,328 2.93% $2,118,207,413 -.--% FMR LLC (Fidelity) 51,429,135 2.71% $1,955,850,004 -.--% Davis Selected Advisers, LP 35,562,330 1.87% $1,352,435,409 -.--% Capital World Investors 30,498,000 1.60% $1,159,838,940 -.--% Morgan Stanley 27,709,008 1.46% $1,053,773,574 -.--% % of Shares Held by All Insider and 5% Owners: 2% -.--% Top 10 [1.0%] of 990 Institutional Holders Control 29.36% -.--% Percentage of Barclays and "Associates" Control 8.42% -.--%
Dodge & Cox manages two funds that control 3.68%.
Vanguard manages two funds that control 1.58%.
FMR (Fidelity) manages a fund that control 1.04%.
Washington Mutual manages a fund that controls 1.01%.
Therefore, the TOP 10 Major Holders control 50.36%, and
Barclays/Associates control 9.43% of Wachovia Corp.
Capital Group now controls 12.50%.
© 2008 by Edward Ulysses Cate
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