Citi and Feds pissed at Wells Fargo

[Barney]

http://news.yahoo.com/s/ap/20081004/ap_on_bi_ge/wells_fargo_wachovia_38

"A battle broke out Friday for control of Wachovia, as Wells Fargo agreed to pay $14.8 billion for the struggling bank, while Citigroup and federal regulators insisted that Citi's earlier and lower-priced takeover offer go forward."

Market says Wachovia is worth $15 Billion, but Citi and their friends at the Fed are insisting that their $2 Billion with FDIC backing should go through?!

Same sh1t was pulled on Washington Mutual. There was a lot of interest in WaMu, but the Feds seized the company while the execs were in flight and gave it to JP Morgan behind closed doors.

This is all a big con job.

[Micah Dardar]

Is Wells Fargo part of their grand scheme? I banked with them when I lived out west, and they didn't seem too predatory.

[Ex Post Facto]

They aren't predatory per se...but they charge fees for everything. It's probably why they are financially secure enough to purchase another bank.

[Malakai]

Nothing at all wrong with WF putting in a larger bid than the shitty FDIC backed plan.

This is why we didn't need any of these bailouts. There was interest in these companies; no real surprise though since our elite just wanted more stuff free or cheap!

[Aratus]

Citi was sharking in on Wachovia and Wells Fargo gave a more equitable price and is on a sounder fiscal ground??? like Citi was sharking in because Citi is like a pulverized boxer who needs ropes to lean on?? like why was someone flipping a 'sweetheart' deal Citi's way if WELLS FARGO is solid and stolid?

[forsmant]

Any news on this?

[surf]

The head of the FDIC said the agency is standing behind the Citigroup agreement, but that it is reviewing all proposals and will work with the banks' regulators "to pursue a resolution that serves the public interest."
...

Under Wells Fargo's deal, Wachovia shareholders would receive 0.1991 shares of Wells Fargo for every share of Wachovia stock they own, valuing Wachovia at about $7 per share. This is a nearly 80 percent premium over the stock's Thursday closing price of $3.91. Shares closed at $10 on Sept. 26, the last trading session before the deal with Citigroup was announced.

"This deal enables us to keep Wachovia intact and preserve the value of an integrated company, without government support," Robert Steel, Wachovia's president and chief executive, said in a statement.

In its planned takeover of Wachovia, Citigroup said it would assume $53 billion worth of debt and agreed to absorb up to $42 billion of losses from Wachovia's $312 billion loan portfolio. The FDIC agreed to cover any remaining losses in exchange for $12 billion in Citigroup preferred stock and warrants.

"Wells' deeper and more considered due diligence has probably revealed fewer risky assets and a larger number of higher valued assets than originally thought," said Anant Sundaram, professor of finance at the Tuck School of Business at Dartmouth College in an e-mail to The Associated Press.


citi was always a bitch to work with. very much like the gov't.

[Bruno]

Citi's deal would cost the taxpayer $12 Billion and give a sweetheart deal to Citi, who has ties going way, way, back.
WF's deal would cost the taxpayer nothing.

[Spider-Man]

If I bank with Wachovia, should I switch to something local?

[surf]

i'd move it as a protest if Citi wins. personally, i'd always recommend a community bank or a credit union - but check their balance sheets (available various locales online: generally through 6/08)

[spacehabitats]

Is Wells Fargo part of their grand scheme? I banked with them when I lived out west, and they didn't seem too predatory.

They aren't playing the game with the Fed so, no, I would say they aren't one the insiders.

[fahayek]

If I bank with Wachovia, should I switch to something local?


http://www.ronpaulforums.com/showthread.php?t=160841

If everyone pulled thier money out of these shit banks they would be forced to close down and write off the bad assets. Stop propping up these big banks like Wachovia, BOA, Citi, etc. Find out what is on thier books and if they have bad assets, move your money. There are plenty of smaller banks which are solvent and offer just as many perks as the big banks. LETS FORCE THESE BANKS OUT!!!!