Gothamist: Wells Fargo Proceeds with Wachovia Purchase

Karate Kim

Fri, 10 Oct 2008 12:04:52 -0500

It’s not quite that simple. Wells walked away from Wac on that Friday and Citi was forced into this acquisition by the FDIC. The FDIC is strapped for cash given all the smaller regional banks around the country that are about to fail and depositors need the insurance to quell further bank runs. So through a shotgun marriage on Sun Citi inked an exclusivity agreement to buy Wac at $1 share and government financing of the toxic assets on Wac’s books. There is cause for the lawsuit as Citi started providing credit to Wac on Mon to keep the lights on. Had Citi not stepped up Wac would have simply failed and gone under with the shareholders getting $0. Citi is due something, not $60 bln, but something. And technically one of the main reason Wells came back is because of a change in tax law that Tues or Wed which will end up taking more money away from the tax payer then the Citi deal as there is now more favorable treatment in bank to bank mergers. http://money.cnn.com/news/newsfeeds/articles/djf500/200810062000DOWJONESDJONLINE000725_FORTUNE5.htm

mdowning

Fri, 10 Oct 2008 12:02:08 -0500

Snoopy, there will be many more opportunities...

Snoopy

Fri, 10 Oct 2008 11:53:08 -0500

I was going to pay 30 billion with the help of the government. 2 billion for the purchase and 28 billion in my pocket. I just didn't jump on it quick enough. Maybe next time.

pkreder

Fri, 10 Oct 2008 11:31:10 -0500

FUCK CITIGROUP...a lawsuit for $60 billion...becuase now you can't get WFB for $2 billion but at a far larger expense to taxpayers...FUCK CITIBANK...GROUP...All of it... so when WFB opens in NYC I can flee WAMU...I mean CHASE...maybe I should just do the shoebox thing...

Think twice

Fri, 10 Oct 2008 11:21:05 -0500

Looks like Wells Fargo will be opening branches in the Northeast.