It's old news that Wachovia sold its banking services to Citigroup this week. What may shock you is how Wachovia also froze thousands of college institutions' accounts. Though you may not be a current student, the effects of this account freeze are startling for everyone-- student, educator, or American.
According to an article written on The Chronicle of Higher Education, many colleges are bracing for a hard financial impact. Though many larger institutions have plenty of short-term income to supplement the lost of assets due to the freeze, smaller institutions are worried. Some have even alerted local representatives that they might not be able to make payroll. The article highlights President Edward F. Leonard III, of Bethany College, Kansas, stating, "[Bethany College] has enough money to cover costs for now because students just paid tuition, but [I'm] worried about the second semester, when the college typically dips into its short-term funds to pay for a variety of operating expenses."
The sobering effects of the Wachovia sell, in conjunction with Congress' inability to draw up a rescue plan, leaves Americans everywhere wondering, what's next?