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Citibank/Wachovia merger off - now it's Wells Fargo
Old 10-03-2008, 06:01 AM   #1
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Citibank/Wachovia merger off - now it's Wells Fargo

The FDIC brokered $1 per share purchase of Wachovia by Citibank has been trumped by a $7 per share purchase by Wells Fargo - with NO govt. involvement. Wachovia's board approved the sale last night. Bet the Wachovia shareholders are in a better mood today...

Wells Fargo acquiring Wachovia for $15.1 billion - Yahoo! News
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Old 10-03-2008, 06:20 AM   #2
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Buffet owns 9% of Wells. word was he didn't want anymore risk after GS, maybe something changed now. maybe we'll see a GS/Wells Fargo merger
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Old 10-03-2008, 06:30 AM   #3
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Hark! Is that the sound of returning confidence?

I still maintain these "failed" banks have a lot of valuable assets on their books that have been written way down due to the silly "mark to market" rule. That rule was quietly amended earlier this week. I have my doubts that at this time anyone would write up any assets but they now have cover to not write anymore performing assets down. Nothing like arcane accounting rules to create and destroy wealth.
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Old 10-03-2008, 07:05 AM   #4
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The banks that survive all of this, especially the big boys that are gobbling up those that have fallen, are going to be monsters. Barring the end of the world, there looks to be a lot of potential going forward in WFC, JPM, USB and GS.
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Old 10-03-2008, 08:02 AM   #5
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Old 10-03-2008, 08:24 AM   #6
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Not so fast . . . some palms have been greased already.
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Old 10-03-2008, 08:32 AM   #7
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Wonder how Wells Fargo plans on offloading all of Wachovia's toxice debt they took on from Golden West, stick the taxpayers with it??
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Old 10-03-2008, 08:40 AM   #8
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Wonder how Wells Fargo plans on offloading all of Wachovia's toxice debt they took on from Golden West, stick the taxpayers with it??
Everything I've seen says "no govt. involvement" in the deal. Of course that's before the House passes the Rescue Bill later today. Once that happens I'm sure Wells Fargo will back up a dump truck load as will all the other large banks.
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Old 10-03-2008, 08:42 AM   #9
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Wonder how Wells Fargo plans on offloading all of Wachovia's toxice debt they took on from Golden West, stick the taxpayers with it??
The House is voting on it today

wonder how much bribes Buffet gave out
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Old 10-03-2008, 08:49 AM   #10
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Just saw where Citigroup is demanding they have an exclusive deal for Wachovia, the Wells Fargo deal is invalid. Fun and games!!!
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Old 10-03-2008, 08:51 AM   #11
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Citi needs the deposits so they can stop shedding assets like a snake sheds skin
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Old 10-03-2008, 08:55 AM   #12
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Citi needs the deposits so they can stop shedding assets like a snake sheds skin
This "perfect storm" plays into Jamies Dimon's hands, he wants nothing more than to bury Citi and become the biggest bank..........he might get there by years end.......
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Old 10-03-2008, 09:31 AM   #13
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Just saw where Citigroup is demanding they have an exclusive deal for Wachovia, the Wells Fargo deal is invalid. Fun and games!!!
Heh. Citi might want to play nice on this one, since it is entirely possible that they will need a favor from the FDIC in the future.
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Old 10-03-2008, 09:51 AM   #14
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FDIC doesn't seem overly happy about the Wells
Fargo offer. I suspect they view the Citi deal as a 2 fer. They rescue both Wachovia and Citi while 'only' assuming 270 billion of guarantees. With Wells Fargo buying Wachovia they may still have to rescue Citi later.

Of course it also undermines their bargaining power in a future crisis to have a deal like Citi-Wachovia potenially coming undone.
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Old 10-03-2008, 09:51 AM   #15
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Heh. Citi might want to play nice on this one, since it is entirely possible that they will need a favor from the FDIC in the future.
Absolutely..........
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Old 10-03-2008, 09:58 AM   #16
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Geez. we cancelled our accounts in Citibank a few years ago - unbelievably bad service. Went to BOA - but they made us wait so long we up and left, went to WaMu. Things went well at first, but then a year later they refused to notarize a doc for me so we closed that and went to Wachovia. Man, I hope we don't end up back a Citi again.
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Old 10-03-2008, 10:02 AM   #17
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Geez. we cancelled our accounts in Citibank a few years ago - unbelievably bad service. Went to BOA - but they made us wait so long we up and left, went to WaMu. Things went well at first, but then a year later they refused to notarize a doc for me so we closed that and went to Wachovia. Man, I hope we don't end up back a Citi again.
Can't say I have ever been impressed with the service of the big banks, which is why I have mostly used smaller, local banks, credit unions, and now Schwab's bank. Problem with the smaller banks is they tend to get hoovered up on a regular basis and you end up back at MegaDoofusBank anyway. I am hoping that TD Bank will choose not to screw up Commerce Bank and buck the usual trend with buyouts.
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Old 10-03-2008, 10:03 AM   #18
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I wonder if Berkshire Hathaway helped nudge Wells Fargo along. I bet there's a whole stack of BRK filings that the SEC has agreed to keep confidential for a few more months...

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I still maintain these "failed" banks have a lot of valuable assets on their books that have been written way down due to the silly "mark to market" rule. That rule was quietly amended earlier this week.
2B, could you point me to a link for that?
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Old 10-03-2008, 10:04 AM   #19
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Geez. we cancelled our accounts in Citibank a few years ago - unbelievably bad service. Went to BOA - but they made us wait so long we up and left, went to WaMu. Things went well at first, but then a year later they refused to notarize a doc for me so we closed that and went to Wachovia. Man, I hope we don't end up back a Citi again.
I have always been happy with my service from Citi. It's the only bank I've used for 10 years now. I guess my standards must be low?
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Old 10-03-2008, 10:05 AM   #20
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Geez. we cancelled our accounts in Citibank a few years ago - unbelievably bad service. Went to BOA - but they made us wait so long we up and left, went to WaMu. Things went well at first, but then a year later they refused to notarize a doc for me so we closed that and went to Wachovia. Man, I hope we don't end up back a Citi again.
Find yourself a credit union so you can stop playing bank roulette...
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