This has the potential to be the Democrats’ Enron of 2008.
The recent troubles of Wachovia are directly linked to its $25.5 billion purchase of Golden West Financial in 2006. Golden West was run by two longtime liberal activists – Herb and Marion Sandler.
Golden West was the holding company for one of the nation’s largest S&Ls: World Savings.
World Savings was one of the largest originators of option-adjustable rate mortgages, dumping $122 billion dollars of these onto the books of Wachovia in the process of the buyout. In addition, World Savings had a huge portfolio of Home Equity Lines of Credit/Loans, that are not entitled to relief in foreclosure auctions on the property they were given unless the auction yields a higher price than the original mortgage. That means many of these Home Equity Loans may end up with zero value.
Herb and Marion Sandler pocketed nearly $2 BILLION from Golden West sale to Wachovia.
Now Wachovia is frantically trying to sell itself to avoid going into receivership – mostly because of the toxic mortgages the Sandlers sold to it in 2006.
The Sandlers donated $2.5 million to MoveOn.org in 2004.
As a married couple, they have donated over a million dollars to Congressional Democrats over the last 4 election cycles, according to Open Secrets.
They pledged $15 million to Human Rights Watch in 2005.
They bankrolled two pro-Obama 527 groups this spring called VoteHope and PowerPac.org.
They created a new “media” organization called ProPublica, hiring out-of-work former journalists to dig up dirt and launch smears against GOP candidates and Conservative media personalities under the guise of “Investigative journalism”.
This is the Democrats’ Enron times a thousand. If Wachovia continues its slide, the Sandlers are the reason why. They knew what they were doing when they sold in 2006. This is true Democrat wealth redistributionism. Sinking a huge super-regional bank by selling it toxic assets, while funneling tens of millions into the coffers of left-wing advocacy groups to further undermine capitalism and promote socialism in America.