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View Full Version : Wells Fargo-Not Citi-Buying Wachovia for $15 B




bobbyw24
10-03-2008, 05:40 AM
http://news.yahoo.com/s/ap/20081003/ap_on_bi_ge/wells_fargo_wachovia

www.RonPaulNews.net

slacker921
10-03-2008, 06:22 AM
let's see.. Wachovia stock was at $6.. they announce Citi is buying them.. stock goes to under $1 for a while then back up to around $3.. then.. they're bought for $7/share? Is that right? If so, some people just got rich(er).

llepard
10-03-2008, 06:27 AM
This is done so Wells can sweep all of their bad stuff onto Wachovias books. Wells is a major inside player and survivor.

The deal was also probably arranged by the PPT. The market is looking at the abyss and needed some bullish news. Wells played that roll.

Recall that Wells upped their dividend in July when the financial crisis started, right at the beginning on a day when some good news was needed.

My bet is that the CEO of Wells is in Paulson's pocket.

How is it that every major bank has had trouble and yet WFC looks clean as a rose. They are in California which is ground zero for the housing bust. There is little doubt they are functionally bk.

When WFC comes apart it will be quite a show.

JosephTheLibertarian
10-03-2008, 06:30 AM
How can one extention of government buy out another extention of government? They certainly aren't private institutions lol

Falseflagop
10-03-2008, 07:31 AM
very involved in 100 LTV crap and 95% LTV crap loans, I agree with you all part of the script. As CNBS cheerleaders were drooling over this deal. I sure hope the CONGRESS stands up and knocks this thing down! I hate the fact they are all doing these deals with inside info that BAILOUT BILL will pass especially the likes of Buffet. Another tool imho.

The trust in markets is gone as everything in govt reporting of stats imho is a LIE day after day. Companies lying about their balance sheets to continue the ponzi scheme.

I am out of the market completely, when the invisible hand is in play you have no chance just look at GOLD/SILVER in paper market they are getting whacked while USD rocketing (with Bailout?) this is odd. Yet in phyiscal market you cannot get gold and silver for example SILVER is trading at 4-8 dollars higher than spot!! Total disconnect. MARKETS make no sense period end of story !

HOLLYWOOD
10-03-2008, 08:27 AM
Warren Buffet bought $5 BILLION of GOLDMAN SACHS providing NEEDED liquity

Warren Buffet bought $3 Billion of GE providing NEEDED liquity

EX- Goldman SACHS Government officials conspire and use FDIC to pull/break deal from CITIBANK and hand it over to WELLS FARGO.

WARREN BUFFET is the largest Share holder in WELLS FARGO.

Follow the trail of money... and it WILL lead you to the truth! Glad to SEE SHEILA E. BLAIR (FDIC chairman) has the ruling thumb of looking out for their INNER CIRCLE of FRIENDS (CIRCLE of GREED, uh, I MEANT TRUST) :rolleyes:


PRIOR to TODAY:

Didn't they already use option 6 with the WB->CITI deal? Looks like the FDIC guaranteed $270bn of loan assets for $12bn in Citi equity, loans with a market value of maybe 22 cents on the dollar (if memory serves about that sale Merrill did and so forth). Granted that if no more than $42bn goes bad, the FDIC comes out ahead, they did still just guarantee over $200bn in shaky loans however you look at it.

http://www.clusterstock.com/2008/9/citi-c-buying-wachovia-wb-banking-ops

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.

SnappleLlama
10-03-2008, 08:29 AM
Wells Fargo had better not implode...that's my IRA, damnit!