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What Wachovia Customers Need to Know
The Wall Street Journal - Deal Journal ^ | 2008-09-29 | Mary Pilon

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 ...


TOPICS: Business/Economy; News/Current Events; US: North Carolina
KEYWORDS: bank; banking; banks; citi; citichovia; fdic; financialcrisis; wachovia
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To: ken21

Fuck it. I’m gonna go open a little bar in Key West. ;-)


41 posted on 09/29/2008 7:50:06 PM PDT by Raebie
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To: Raebie

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.


42 posted on 09/29/2008 7:50:27 PM PDT by ken21 (people die and you never hear from them again.)
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To: autumnraine
... it seems that people are just shuffling debt. Like folks that pay off credit cards with other, lower interest credit cards and postponing paying them off. I don’t know. Maybe this is a good thing and we won’t have to rescue Citigroup in 2 months.

If you're right - there'll be "tells" - worst case it gives people two extra months to find safety.

43 posted on 09/29/2008 7:50:40 PM PDT by GOPJ
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Steve Forbes on FNC now.


44 posted on 09/29/2008 7:53:28 PM PDT by eyedigress
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To: rabscuttle385

Now that Wachovia is history, can we tear down that ugly building they put up in downtown Winston?


45 posted on 09/29/2008 7:59:23 PM PDT by HIDEK6
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To: HIDEK6

Sounds like someone is still bitter from the Wachovia/First Union merger...

;-)


46 posted on 09/29/2008 8:01:06 PM PDT by Raebie
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To: rabscuttle385
The Uppity Woman blog has a detailed expose of the Wachovia failure and it leads back to Sorros and a couple of his billionaire buds. The article also goes into detail about how the democrat party is now owned by billionaire socialists and other leftists. Fascinating.
47 posted on 09/29/2008 8:01:57 PM PDT by mountainfolk ( God bless President George Bush)
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To: mountainfolk

I saw that, but it doesn’t excuse Ken Thompson’s stupidity. Ken Thompson the millionaire...


48 posted on 09/29/2008 8:03:10 PM PDT by Raebie
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To: rabscuttle385

I kind of favored the name “WackCiti” myself.......


49 posted on 09/29/2008 8:04:39 PM PDT by CaliforniaCon
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To: editor-surveyor

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.


50 posted on 09/29/2008 8:05:13 PM PDT by GregoryFul
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To: editor-surveyor

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.


51 posted on 09/29/2008 8:14:58 PM PDT by autumnraine (McCain/Palin 08)
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To: Raebie
The advantage will be that they didn't have to spend a lot of their capital for the buy, but where large bank mergers/buyouts take many months for government final approvals, and during that time they already can get to work on figuring out all the integration and rebranding issues, these deals were done soo quickly, I predict the process will take much longer than normal. Also we aren't dealing with a positive economic climate out there for these types of companies, so they are going to have to take it slow and steady.

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.

52 posted on 09/29/2008 8:20:15 PM PDT by Proud_USA_Republican (We're going to take things away from you on behalf of the common good. - Hillary Clinton)
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To: Raebie

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.


53 posted on 09/29/2008 8:27:58 PM PDT by HIDEK6
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*bookmarked*


54 posted on 09/29/2008 8:34:20 PM PDT by NeverEVERKerry
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To: rabscuttle385

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.


55 posted on 09/29/2008 8:38:10 PM PDT by SlapHappyPappy
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To: Perdogg

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.


56 posted on 09/29/2008 8:40:05 PM PDT by SlapHappyPappy
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To: Raebie

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.


57 posted on 09/29/2008 8:46:33 PM PDT by SlapHappyPappy
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To: Raebie

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!


58 posted on 09/29/2008 10:02:18 PM PDT by yankeebulldog ("Semper Viper!")
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To: Raebie

True, but at the root of this rot is the determination of the socialists to destroy our economy however they can.


59 posted on 09/30/2008 8:07:05 AM PDT by mountainfolk ( God bless President George Bush)
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To: SlapHappyPappy

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?


60 posted on 09/30/2008 1:32:00 PM PDT by Raebie
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