The next bank

Traditionally, banks get shut down over weekends, since the extra time gives regulators room to get into the banks and take control. Wamu’s shutdown last night suggests either that regulators wanted to put the fear of God into Congress or that there was an acceleration of the run on the bank yesterday.

That makes Wachovia’s trading today particularly dicey. Twice in the last six weeks, the stock has been down to $9 during the blackest of trading days. Last night, on the back of anticipated Congressional approval for the $700 billion bank bailout, WB closed at $15.

This morning, with the bailout apparently still weeks away, WB opened at $10, then drifted up to $11.34. But now WB has sunk back to $10.

Keep your eye on WB. Here’s a chart of trading so far.

Update: Have you lent long-term money to WB and want some insurance? It will cost you, upfront, 30 cents on the dollar and 5 cents a year. Why would anyone (except a retail account with FDIC $100k guarantee) leave money in WB?