Last week, Citigroup dropped out of talks to acquire Wachovia, a former Alabama bank that many Alabamians had investments in. According to a revealing report on court findings from John Downey of the Charlotte Business Journal (Charlotte is where Wachovia went after it left Birmingham) posted in the Birmingham Business Journal, Citigroup says its proposed $2 billion deal with Wachovia might have been better for taxpayers and Wachovia shareholders than Wells Fargo’s $15 billion deal.

The other big story this week is Alabama’s massive general fund budget shortfall, which Birmingham News writer David White says “could drop below budgeted spending this year by $75 million to $108 million or more.” The hardest hit areas could be prison agencies, state troopers, and health care. An amendment on the Nov. 4 ballot would help bail out the state by using its rainy day funds. Maybe Riley’s 2009 international trade trips will help. The Education Trust Fund may also be hit hard.

Speaking of education, Alabama’s colleges are likely to be hurt by the nation’s financial crisis, says Birmingham News writer Thomas Spencer:

The University of Alabama system was the most directly and immediately affected by market turmoil when, last week, a money market fund managed by Wachovia limited withdrawals. The UA system had $175 million in the Commonfund, which was used by 1,000 colleges nationwide.

That money was used for daily operating expenses at UA, the University of Alabama at Birmingham, the University of Alabama in Huntsville and UAB Hospital, according to UA spokeswoman Kellee Reinhart. The university was able to withdraw $61 million and expects to get the rest back as the underlying assets mature. In the meantime, the system raised cash from other investments.

Physicians Medical Center Carraway was seeking assistance from the city of Birmingham to avoid bankruptcy last week, and they may have been successful (for the short term anyway).

Ye gods, there is more news related to the financial crisis, but it may be good news for Jefferson County. The county is looking to get some money from the federal bailout to help with sewer debt. The county is also cutting jobs, closing satellite offices, and otherwise heading towards smaller government. Bettye Fine Collins admits “This will bring a lot of inconvenience to our citizens.”

After initially strongly defending city workers in the case of the 11,760 dead endangered watercress darters, Birmingham mayor Larry Langford has softened his stance. Birmingham Weekly’s own Kyle Whitmire talked a bit about this on WBHM last week. The city is possibly facing ~$294 million in fines (that’s almost the city’s entire operating budget), but they might be cut some slack since the kill was likely an accident (even if it was a stupid accident). Keith Rizzardi, who writes a blog on law related to the Endangered Species Act called ESAblawg told Birmingham Weekly this:

The Endangered Species Act is a very powerful statute, and intent is not necessary to find a violation of the law.  Other local government entities have faced significant fines and even criminal investigations for inadvertent actions adversely impacting the environment and endangered species.

In other environmental news, the Alabama Cleans Fuels Coalition has announced that their I-65 biofuels corridor is almost complete. The Terminal has the story.

In other Langford news, the Mayor is urging donation of powdered milk, rice, and dried beans to aid Haiti disaster victims. Donations can be dropped off at Boutwell Auditorium.

There will probably be more on that in Thursday’s edition of the Birmingham Weekly.

Looking to get involved in Alabama’s Democratic party events? There are some good opportunities coming up:

7 pm Wednesday, Oct. 15th  Presidential Debate

Fox & Hound at the Colonnade

Sponsored by Over the Mountain Democrats

$25 contribution to Obama for America requested but not required.

Matthews Bar & Grill 2028 Morris Avenue Birmingham, AL

Birmingham Young Democrats

A voluntary donation to Alabama Young Dems appreciated.

5:30-7:30 pm Thursday, Oct. 16th

Fundraiser for: Judge Deborah Bell Paseur, candidate for Alabama Supreme Court

Judge Clyde Jones, candidate for Alabama Court of Criminal Appeals, Place 1

Aimee Cobb Smith, candidate for Alabama Court of Criminal Appeals, Place 2

Last chance to support the most qualified candidates running for statewide judicial positions.

$50 contribution per candidate requested.  Let’s help them to victory!

RSVP required: lindav0327@charter.net

Democratic Candidate Forum - Free & Open to the Public

6:30 pm Tuesday, Oct. 21st Birmingham Botanical Gardens

All statewide and local candidates are expected to attend.

Confirmed candidates at this time include Judge Deborah Bell Paseur, Judge Clyde Jones, Aimee Cobb Smith, Senator Vivian Figures, Shanta Owens, Jennifer Parsons Champion and J.T. Smallwood among others.

Judge Deborah Bell Paseur’s campaign for Alabama Supreme Court needs people willing to work phone banks and canvass.  Just a few hours can make a huge difference.

Contact kristi@judgedeborahbell.com 317.5354

Register voters with EmpowerAlabama.org.  Check their huge Halloween event, trickorvote.org.

Register voters with the Greater Birmingham League of Women Voters; contact karenthrelkeld@yahoo.com

Like our new daily “National Mix” feature (or, as it will be called until the election, the “[Number of days until the election] days out” feature), this new daily post will chronicle the happenings of the great State of Alabama and the Magic City through its newspapers and blogs. Comments are encouraged, as are tips and suggestions as to what blogs to read. So, lets get to it!

One of the biggest stories to break this beautiful weekend has to do with the Citigroup/Wachovia and now possibly the Wells Fargo/Wachovia deal. The FDIC had brokered a deal with the financially troubled Wachovia to be bought out for $1 a share ($2.2 billion) by Citigroup. Four days later, Wachovia announced a much more lucrative deal with Wells Fargo, and Citigroup balked. This Associated Press article, reprinted in the Birmingham News, says a judge in New York has temporarily blocked the deal, and explains why this is important to Alabamians:

Wachovia has thou­sands of Birmingham stock owners from its $14 billion ac­quisition in 2004 of SouthTrust Corp., then the second-largest bank in the state.

Those stock owners are probably pushing for the Wells Fargo deal, in which Wells Fargo would pay 7 times more than Citigroup to purchase all of Wachovia.

Birmingham News columnist John Archibald harps on Birmingham’s staggering murder rate, mixing in obscure Alabama history with ease. Birmingham has had 71 homicides this year according to BhamWiki’s running list, which puts us on pace for 93 for the year. May we never reach that number.

James L. Evans penned a revealing opinion piece in the Mobile Press-Register this morning regarding politics and the pulpit. According to Evans, “33 pastors from all across the country deliberately broke the law” today by endorsing a political candidate from the pulpit. It’s illegal for tax-exempt organizations to endorse a candidate. The pastors were encouraged a conservative organization called the Alliance Defense Fund, which hopes to challenge the law in Supreme Court.

The churches risk losing their tax-exempt status, which Evans points out is not “an inalienable right.” He states clearly that “tax exemption is a privilege.” Here’s Evans’ succinct opinion on the subject:

If preachers want to play politics from the pulpit, to throw the full weight of the Divine Presence behind some measly political party, that’s fine.They should renounce their tax exempt status and become what they truly want to be: a precinct house for local politics. Just don’t expect the rest of us to pay for it.

There has been some consternation about the loss of 11,760 endangered watercress darters due to the mangled removal of a beaver dam at Roebuck Springs. The dam’s removal cause the pool to drain rather quickly, and the darters were left beached. Katherine Bouma details the story here. Mac Thomason of Thomason Tracts adds his commentary: “In other words, you’re screwed, fishies.”

Other stories include an opinion piece on a panel debating whether or not Alabama should elect its judges on a partisan basis anymore, and questions from former Gov. Fob James on how Alabama should treat its rainy day funds.

See you folks on the morrow.

Update: I got the date wrong yesterday. Nice. Changed to Oct. 5.