Credit freeze just hot air?

As reported in the Wall St Journal, the Govt backed Wachovia bailout was rejected;

Citigroup Inc.'s takeover of Wachovia Corp. was torpedoed on Friday when San Francisco-based Wells Fargo & Co. agreed to pay $15.4 billion to buy Wachovia.

Wells Fargo's offer upended the government's hastily arranged effort last weekend to match New York-based Citigroup with Wachovia of Charlotte, N.C. -- a federal effort to prevent the bank, the nation's fourth-largest in market value as recently as last year, from joining the growing ranks of failed financial institutions. The Citigroup deal, which included a provision for the government to absorb some possible Wachovia losses, was warmly received by Citi shareholders but nearly wiped out Wachovia shareholders.

Wells Fargo's new offer for Wachovia is especially significant because the new buyer asks for no government assistance. The deal also provides a glimmer of support for the fundamental value of troubled U.S. banks: It signals that there is still a market, albeit limited, for private takeovers of these institutions, one that does not place taxpayer dollars at risk....(cont'd)