Posted on 10/03/2008 8:55:58 AM PDT by Candor7
A big bank acquisition and hopes that a Wall Street bailout will pass Congress Friday afternoon pushed stocks higher, outweighing a weak jobs report.
The Dow Jones Industrial Average, which slid almost 350 points in the previous session, recently posted a 206-point gain, trading up 2%, at 10688.66.
Investors' mood was boosted by news that Wachovia has agreed to sell itself to Wells Fargo in a $15.4 billion takeover that will require no government assistance, scrapping a federally backed deal with Citigroup. Wachovia shares surged more than 71% in recent action and Wells Fargo rose about 8% while Citi was down about 10%.
Citigroup, in a statement, said Wells Fargo's conduct constitutes a "breach" of Citi's earlier agreement with Wachovia. The Federal Deposit Insurance Corp. said it stands behind the Citigroup-Wachovia transaction.
Despite Citi's protestations, Friday's deal cheered investors precisely because it was worked out without federal backing, a promising sign for investors hoping to see the broader market function on its own.
(Excerpt) Read more at online.wsj.com ...
Betting that the bail out will come, Wells Fargo has jumped into a deal which had already already fashioned between Citicorp and Wachovia, facillitated by our Socialist Government and its Socialist Financial institutions, and to the outrage of the Barny Franks of our world, has stolen the bride and rode off with her.
Private enterprise wins, but for how long?
Sickening.
The dolts should have just retitled the crap article to say. "Falling dollar, skyrocketing energy prices and hyper-inflation move stocks upward, my boss made me write this garbage so give me a bailout.
This one is a 15 billion dollar risk.
But not really.
Wells Fargo has gambled that 15 billion of the upcoming 700 billion bailout will be harvested by Wachovia. A glimpse of why " No Bail out" is right.
Your tax dollars at work, even before they are allocated by legislation.
LOL.
But I'm STILL against the bailout.
bookmark
However, thats assuming the bail out will be passed.
If not, Wells Fargo may have just bought 15 billion bucks ( plus)worth or more, of worthless sub prime mortgage derivatives.
A daring move.
You have to admire the hutzpah.
If successful, this will make Wells the most powerful bank in the USA.
Citi and Wells Fargo and fighting over these "worthless" assets. Why am I being plundered to help these guys?
To clean up Wall Street? LOL. Our socialists in government are counting on our money to fund sub prime mortgage lending for years and years to come, as the mortgage derivative pay backs trickle in for the next 10 years.
Thats why they are whining about the broken Citicorp / Wachovia deal.
You get no stock or anything else in return.
This is why government needs to get out of the business of giving our money away to "poh" folks, something they can't do directly, so they do it this way.
Instead Wells , a non sub prime mortgage participant, gets our money, perhaps the lesser of two weevils.
But the taxpayer gets nothing, nada, buttkiss, except to say, we rescued the system?
The system needs to end, and we need a new one.
The bailout is a bigger threat to this country than any problem in liquidity.
Woo-hoo! Them's suing words. Sounds like a ton of money for lawyers is in the offing!
700 billion last I heard it was up to 850 billion, with the Pork, or as the MSM called it “sweetners”
It’s not a win for free enterprise, if the banks all consolidate before the bailout occurs.
It’s not a win for free enterprise, if the banks consolidate and still expect a bailout.
Every bank that closes because of the liquidity crisis is a loss for free enterprise.
It won’t be a good bailout if the bailout cash is used to buy up smaller banks for pennies on the dollar.
Joe Biden was wrong about a lot of things last night, but when he said deregulation had lead to this crisis, he was right.
The repeal of Glass-Stegall, the lowering of bank reserves to historic lows have caused this. The sub-prime crisis was the catalyst but probably wouldn’t even be termed a crisis if banks weren’t having liquidity runs as a result of the deregulation.
Heads should roll.
More regulation might be needed to hold these A$$ HATS feet to the fire, but don't you know that enforcing existing regulations is optional.
Just like our present immigration law. Enforcement is optional.
You can have all the laws and regs in the world, but they still will not work against fascist, national socialist culture.
A lot of house cleaning needs to be done, but it won't.
You can blame whomever you think.But if you become like a dog, which bites the stick thrown at it, instead of the thrower , then you get what you deserve: more and bigger sticks thrown at you.
I take a shot at the thrower, you bite the stick.
BTW Danny, if you really want to see what is about to happen to US banks, take a look at a nearly identical crisis which happened to Japan’s banks from 1990 to 2000.
The 700 Billion Bail out will not help.
Its a long read. But when you are done, you will understand exactly whats about to happen with a great deal of accuracy.
“Japan’s Backing Crisis: Lessons Learned”
http://www.imf.org/external/pubs/ft/wp/2000/wp0007.pdf
Quote from another article:
“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. “Although it is still too early to tell, this could presage a significant shift in market sentiment toward the value of companies such as Wachovia, and may suggest that there has been an overreaction in the downdraft that we saw in the past few weeks. It is a huge shot in the arm for market confidence. It is also a signal that market forces are capable of resolving some aspects of the crisis without undue Congressional, and hence, taxpayer, intervention.”
http://news.yahoo.com/s/ap/20081003/ap_on_bi_ge/wells_fargo_wachovia_24
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