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 ...
Fuck it. I’m gonna go open a little bar in Key West. ;-)
yes, you are right.
citi’s been lagging in many markets because it couldn’t afford to build new banks or buy existing banks for a larger footprint.
now, they’ve got that.
If you're right - there'll be "tells" - worst case it gives people two extra months to find safety.
Steve Forbes on FNC now.
Now that Wachovia is history, can we tear down that ugly building they put up in downtown Winston?
Sounds like someone is still bitter from the Wachovia/First Union merger...
;-)
I saw that, but it doesn’t excuse Ken Thompson’s stupidity. Ken Thompson the millionaire...
I kind of favored the name “WackCiti” myself.......
The FDIC has a 90 day grace period for people caught in this situation, to adjust accounts. Don’t know about CD’s & other time deposits.
I’m not talking about people shuffling debt, I’m talking about banks.
Buyouts and mergers are like it is when people use one credit card to pay off another. It’s just lots of more zeroes involved.
The Chase/Wamu deal is going to have some serious issues. You basically had two banks with major differences in culture and how they did business. The northeast major banks have had a lot of issues trying to get a large footprint in the west coast, where not only did Wamu do an excellent job in west coast banking, but also went in and pulled it off on the east coast as well which did shock a lot of the established banks there and they saw customers leaving them to go to wamu. Wamu was promoting free checking and had free atms at the time. It really pulled in a lot of customers sick of the nickel and diming they got at banks like Citi and Chase. It worked beautifully.
BofA was already well established on the west coast before moving the majority of its ops to the east coast so it didn't effect them too much. But Chase is one of the most elitist east coast style banks out there. West coasters look upon these banks as places that only the "grey poupon" types bank at because they tend to give a very different level of service in the branches to those who have large accounts, while treating young customers or working class ones like cattle. Chase is going to have to work on its image and advertising to these west coast customers to make it work.
No. I have no business with Wachovia. They built a commie box in downtown Winston that obscures a fabulous art-deco building that RJR built back in the 20s. That building was used as a model for the Empire State Building.
*bookmarked*
Let’s not call it Citichovia. As a veteran banker (recovered) I know first hand there is no such thing as a merger in banking. If Nationsbank/BofA wasn’t a merger (it wasn’t, we at BofA got bought) this one sure isn’t.
Anyone who, of their own free will, has their entire nestegg invested in a single stock is a fool. And a fool and his money were lucky to get together in the first place.
Sorry to sound cruel, but it really is true.
Actually, 2 years is very doable even for a merger of this size. We’ve seen it done before. In fact, it was harder in the past because many of the larger mergers included operations where certain states had separate charters from the primary bank.
The actual hard part will be selling branches in markets where there is too much overlap when it may be possible for other banks to just buy failing banks at a much lower price. I expect there to be a lot of de novo banks founded to take good branches in just this scenario if there are not local/regional banks capable of buying the branches.
Now that is the smartest thing I’ve seen all night. And while you’re at it, open a dock for the fishermen to drop off the catch for the “nightly special” and I’ll be by for sure!
True, but at the root of this rot is the determination of the socialists to destroy our economy however they can.
Two years maybe but it’s already Oct.’08 and the deal won’t close until the end of the year. End of 2011 seems more reasonable to me. And there’s very little overlap in the branch locations...makes it an attractive deal.
But here’s a thought. The deal can’t go through until the shareholders approve it. What happens if a bailout package is approved and the shareholders reject the deal? There’s no date even set for the vote yet. Could it be Steel is hedging his bets waiting to see what Congress does? Buying some time so to speak?
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