Citibank/Wachovia merger off - now it's Wells Fargo

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
 
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.
 
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.
 
Wonder how Wells Fargo plans on offloading all of Wachovia's toxice debt they took on from Golden West, stick the taxpayers with it??
 
FinanceDude said:
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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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.
 
FinanceDude said:
Wonder how Wells Fargo plans on offloading all of Wachovia's toxice debt they took on from Golden West, stick the taxpayers with it??
Click to expand...

The House is voting on it today

wonder how much bribes Buffet gave out
 
Just saw where Citigroup is demanding they have an exclusive deal for Wachovia, the Wells Fargo deal is invalid. Fun and games!!!
 
Citi needs the deposits so they can stop shedding assets like a snake sheds skin
 
al_bundy said:
Citi needs the deposits so they can stop shedding assets like a snake sheds skin
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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.......;)
 
REWahoo said:
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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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.
 
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.
 
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.
 
MichaelB said:
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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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.
 
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...

2B said:
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.
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2B, could you point me to a link for that?
 
MichaelB said:
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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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?
 
MichaelB said:
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.
Click to expand...
Find yourself a credit union so you can stop playing bank roulette...
 
FinanceDude said:
Wonder how Wells Fargo plans on offloading all of Wachovia's toxice debt they took on from Golden West, stick the taxpayers with it??
Click to expand...

Bingo! All the sudden toxic debt has real value - maybe even full value. C and WFC fighting over a failed bank, the vultures are starting to feed.
 
Find yourself a credit union so you can stop playing bank roulette.
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It's not roulette - more like very specific needs. I am continually amazed that the larger the bank the more difficult it is to satisfy a specific need.
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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More likely I just had some bad experiences combined with poor or no response to polite but firm complaint with request for action. My choice to leave C came when a manager told me he didn't give a sh*t (his exact words)
 
I heard something this morning that this deal became attractive to WFC because of a recent IRS ruling that gives favorable tax benefits for buying a whole company, as opposed to the partial buyout that C was going for.
 
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