Posted on 09/29/2008 6:49:52 PM PDT by rabscuttle385
Call it the birth of Citichovia.
In another day of Wall Street’s epic saga, news came today that Citigroup will acquire Wachovia’s banking operations for $2.1 billion in stock and will assume another $53 billion in Wachovia debt.
Which leaves Wachovia customers scratching their heads, as Washington Mutual customers were last week.
But there’s a big difference between the Wachovia and WaMu dealings — time.
(Excerpt) Read more at blogs.wsj.com ...
you do.
So will Wachovia be renamed as Citibank?
He showed a letter that he got from one of the people in line to get a copy of his book.
The letter was from the CEO of WaMu dated 7 days before they went belly up.
The letter basially said that WaMu was in good shape.
This guy who gave the letter to BOR invested LOTS of money into it, only to lose all of it.
BOR has forwards the letter to the FBI and wants an investigation.
We don’t know yet.
He wants Steele investigated too. So do a couple of people I know.
Really? Perdog been around longtime and I don’t think he is that stupid.
I want them and the bloody bastards they donated campaign money to, who are in congress.
Steele was leading everyone to believe everything was fine right up to Friday. Trust me, if you want a pound of his flesh, you’ll need to get in line.
I don't know.
This is the notice I received from Citi this afternoon:
We are proud to announce that Citi has agreed in principle to purchase Wachovia's consumer banking operations, which includes one of the premier banks in the United States. When this combination happens at year-end, we will be able to bring you more of everything -- more branches, more ATM's and more personal banking specialists. You can look forward to access to 4,300 branches and 28,000 fee-free ATMS in 23 markets.
As details on this exciting combination become available, we will continue to update you.
http://www.freerepublic.com/focus/news/2082962/posts?page=28#28
Yup. I hope it doesn’t take too much of a hit.
Citi ended up with the best part of Wachovia...its retail banking business and their customers will definitely benefit. IF they can deliver the same customer service that Wachovia has. I’m thinking they’d be total fools not to retain most of the GBG management and their operating model and let them run the damn thing. They’ve already said they planned to keep it headquartered in Charlotte, hopefully for that very reason.
I wouldn’t use the word “stupid.”
I don’t think it was merely investor unease that led to the downfall...Wachovia had made some very bad decisions and had greatly overextended its reserves, IIANM.
The going ons in this story are why I bank at a locally owned bank. The money stays here in town.
And the bank is very open that there have been inquiries and offers. All turned down.
Agreed.
Wachovia made one bad decision. Golden West. But hey, they rewarded that decision with a killer severance package.
Think in terms of the FDIC $100,000 limit.
Say you have accounts that are close to the max in two banks. - Now let's say that these banks are merged. - The FDIC is suddenly off the hook for one of your accounts.
Yes, this isn’t some merger of equals. Citi bought the bank operations of Wachovia so most likely, by about 2010 since these types of deals take a long time to get everything integrated, all wachovia branches that survive will be renamed citibank branches.
Same deal with the JPM / Wamu deal.
Basically in less than a week JPM and Citi took out two of its biggest competitors under circumstances so favorable, its highway robbery. The wamu deal was even more favorable for JP. Deal of the century. Only problem now is the cost of integrating the operations, the rebranding of all the branches, retaining the talent (there is a whole lot of pissed off wamu employees who were also big stockholders right now who feel like they have been lowblowed by this deal) and issues like marketing the Chase brand properly in the west coast to keep the majority of the existing wamu big money customers and attract new customers.
And we’re closing in on the end of 2008. They’re saying this will be done by the end of 2010. I’ll believe that when I see it. It’s going to be a ginormous undertaking. Signage is the least of their worries.
the weak taking over the weaker.
robert rubin went to dubai and borrowed 6-7 billion to re-float citi about a month ago.
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