2008-02-06 — msn.com
Wachovia Corp. is issuing $3.5 billion in preferred stock to boost its capital position.
...
The $3.5 billion perpetual preferred stock will pay a dividend of 7.98 percent for 10 years. It will then change to a floating interest rate. Charlotte, N.C.-based Wachovia (NYSE:WB) may redeem the preferred stock after 10 years.
This seems exceptionally bearish to us. Like the monolines: will this be enough cash for Wachovia? Are we seeing the effect of "phantom cash" that constitutes mortgage negative-amortization from the Golden West unit? If not, what happens when that "giant sucking sound" appears?
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