FDIC Just took over Wachovia

[bobbyw24]

CNN is reporting that the FDIC has taken over Wachovia Bank this morning
and will be selling the assets to Citigroup.

[bobbyw24]

Press Releases
--------------------------------------------------------------------------------

Citigroup Inc. to Acquire Banking Operations of Wachovia
FDIC, Federal Reserve and Treasury Agree to Provide Open Bank Assistance to Protect Depositors

FOR IMMEDIATE RELEASE
September 29, 2008 Media Contact:
Andrew Gray (202) 898-7192
angray@fdic.gov


Citigroup Inc. will acquire the banking operations of Wachovia Corporation; Charlotte, North Carolina, in a transaction facilitated by the Federal Deposit Insurance Corporation and concurred with by the Board of Governors of the Federal Reserve and the Secretary of the Treasury in consultation with the President. All depositors are fully protected and there is expected to be no cost to the Deposit Insurance Fund. Wachovia did not fail; rather, it is to be acquired by Citigroup Inc. on an open bank basis with assistance from the FDIC.

"For Wachovia customers, today's action will ensure seamless continuity of service from their bank and full protection for all of their deposits." said FDIC Chairman Sheila C. Bair. "There will be no interruption in services and bank customers should expect business as usual."

Citigroup Inc. will acquire the bulk of Wachovia's assets and liabilities, including five depository institutions and assume senior and subordinated debt of Wachovia Corp. Wachovia Corporation will continue to own AG Edwards and Evergreen. The FDIC has entered into a loss sharing arrangement on a pre-identified pool of loans. Under the agreement, Citigroup Inc. will absorb up to $42 billion of losses on a $312 billion pool of loans. The FDIC will absorb losses beyond that. Citigroup has granted the FDIC $12 billion in preferred stock and warrants to compensate the FDIC for bearing this risk.

In consultation with the President, the Secretary of the Treasury on the recommendation of the Federal Reserve and FDIC determined that open bank assistance was necessary to avoid serious adverse effects on economic conditions and financial stability.

"On the whole, the commercial banking system in the United States remains well capitalized. This morning's decision was made under extraordinary circumstances with significant consultation among the regulators and Treasury," Bair said. "This action was necessary to maintain confidence in the banking industry given current financial market conditions."

Wachovia customers with questions should call their normal banking representative, service center, 1-800-922-4684 or visit www.wachovia.com. The FDIC's consumer hotline is 1-877-ASK-FDIC (1-877-275-3342) or visit www.fdic.gov.

# # #

Congress created the Federal Deposit Insurance Corporation in 1933 to restore public confidence in the nation's banking system. The FDIC insures deposits at the nation's 8,451 banks and savings associations and it promotes the safety and soundness of these institutions by identifying, monitoring and addressing risks to which they are exposed. The FDIC receives no federal tax dollars – insured financial institutions fund its operations.

FDIC press releases and other information are available on the Internet at www.fdic.gov, by subscription electronically (go to www.fdic.gov/about/subscriptions/index.html) and may also be obtained through the FDIC's Public Information Center (877-275-3342 or 703-562-2200). PR-88-2008
http://www.fdic.gov

[RonPaulCentral]

Well timed you Criminals in DC, well timed.

You sons of bitches.

[georgiapeach]

Whoa! WTF, mate?

[Imperial]

Didn't we kind of bail out Citigroup earlier in the year? Or am I imagining this?

[Primbs]

I am wondering if contracts with customers are null and void. For people who have CD's Wachovia may not have to pay interest on these if they go under. Hopefully Citibank will honor previous contracts.

[Bruno]

I had predicted Citi would get it, because their ties to the power structure go way, way, back. I'm not surprised.

[gilliganscorner]

You know what is interesting (or not).

The remaining standing banks? JP Morgan? Citigroup?

Citigroup: http://www.citigroup.com/citi/corporate/history/citibank.htm


1909

Frank Vanderlip is elected president (1909–1919); James Stillman is elected the first chairman (1909–1918).
1913

The bank is the first contributor to the Federal Reserve Bank of New York.

Frank Vanderlip attended the Jeykll Island meeting in 1910 - the meeting where the Federal Reserve concept was formed.


On the evening of November 22, 1910, Sen. Aldrich and A.P. Andrews (Assistant Secretary of the Treasury Department), Paul Warburg (a naturalized German representing Kuhn, Loeb & Co.), Frank A. Vanderlip (president of the National City Bank of New York), Henry P. Davison (senior partner of J. P. Morgan Company), Charles D. Norton (president of the Morgan-dominated First National Bank of New York), and Benjamin Strong (representing J. P. Morgan), left Hoboken, New Jersey on a train in complete secrecy, dropping their last names in favor of first names, or code names, so no one would discover who they all were.

Look at all those names representing JP Morgan.


I wonder if this is still a continuation of the legacy.

[Bruno]

Yep. You got it. It took them quite a while, but all the biggest names left standing are ones that had ties way back to the power structure that has been pulling the strings all along.

[N13]

Expect more of this as the market proves its power.

We have unleashed the forces of capitalism unto us.

[Bruno]

Expect more of this as the market proves its power.

We have unleashed the forces of capitalism unto us.

:confused: Capitalism?

[Cowlesy]

hahaha....another one bites dust

Oh yeah, and....damn you short sellers!!!!! ;)

[N13]

:confused: Capitalism?

Don't tell me you think things that the government or corporations can do are more powerful that the forces of capitalism or the market? Every time people think they can circumvent economic realities, they are proven wrong.

[Cowlesy]

The Bid on Wachovia is $0.01 right now :)

Hope no one went long on Friday!

And I also hope your mutual funds didn't hold big stakes.

[Bruno]

Don't tell me you think things that the government or corporations can do are more powerful that the forces of capitalism or the market? Every time people think they can circumvent economic realities, they are proven wrong.

I misunderstood you. I thought you were blaming capitalism for this mess, instead of the government meddling that led to it, and that were increasing in order to solve it.

[Sarge]

They just said on the house floor debate it was purchased for 1.00 a share.

[RoyalShock]

So, let me get this straight. The banks with direct or strong ties to those who basically created the Federal Reserve are surviving, perhaps even profiting from a massive failure of their competitors in a situation largely created by actions of the Federal Reserve?

Nah, I must certainly be mistaken.

[Bruno]

So, let me get this straight. The banks with direct or strong ties to those who basically created the Federal Reserve are surviving, perhaps even profiting from a massive failure of their competitors in a situation largely created by actions of the Federal Reserve?

Nah, I must certainly be mistaken.

Wish that you were. :mad:

[Micah Dardar]

After all this mess it will be a lot easier to get people to listen and boycott those large evil banks.

Does anyone know if Capital One or any of the credit unions are relatively safe?

[Sarge]

We have been in our Credit Union for 25 years. Well run and owned by the members. Never a problem on getting a responsible loan.