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Wells Fargo outbids Citi for Wachovia

ucsbledbetterucsbledbetter Posts: 173
edited October 2008 in A Moving Train
O hell yeah!! No FDIC involvement.....

http://www.marketwatch.com/news/story/wachovia-agrees-wells-fargos-15/story.aspx?guid=%7BC237871B%2D7BB5%2D43E6%2D9E64%2D6B30CDD21394%7D
Post edited by Unknown User on

Comments

  • mammasanmammasan Posts: 5,656
    Well it's not settled yet. CitiCorp is going to fight this.
    "When one gets in bed with government, one must expect the diseases it spreads." - Ron Paul
  • ucsbledbetterucsbledbetter Posts: 173
    mammasan wrote:
    Well it's not settled yet. CitiCorp is going to fight this.

    True, but goodluck getting around Wachovia shareholders!
  • mammasanmammasan Posts: 5,656
    ucsbledbetter wrote:
    True, but goodluck getting around Wachovia shareholders!

    Well from what I have heard was that Wachovia and CitiCorp signed an agreement and if that is true it doesn't matter what the shareholders say. My girlfriend also stated that the FDIC is backing CitiCorp on this and can just simply go in and take over Wachovia, a la WaMu, and sell the assets to CitiCorp.
    "When one gets in bed with government, one must expect the diseases it spreads." - Ron Paul
  • jimed14jimed14 Posts: 9,488
    hope this means Wells Fargo is in great shape, that's my bank ... :)
    "You're one of the few Red Sox fans I don't mind." - Newch91

    "I don't believe in damn curses. Wake up the damn Bambino and have me face him. Maybe I'll drill him in the ass." --- Pedro Martinez
  • MrBrianMrBrian Posts: 2,672
    mammasan wrote:
    Well from what I have heard was that Wachovia and CitiCorp signed an agreement and if that is true it doesn't matter what the shareholders say. My girlfriend also stated that the FDIC is backing CitiCorp on this and can just simply go in and take over Wachovia, a la WaMu, and sell the assets to CitiCorp.

    Yep, they had a deal. also Wells Fargo must be doing well 15b? yikes! Then again maybe they knew an agreement was aready made,so just made this crazy high bid anyway knowing that they could not buy it but trying give the appearence that they are in great shape to higher it's own assets. so to speak.

    Nah,
  • mammasanmammasan Posts: 5,656
    MrBrian wrote:
    Yep, they had a deal. also Wells Fargo must be doing well 15b? yikes! Then again maybe they knew an agreement was aready made,so just made this crazy high bid anyway knowing that they could not buy it but trying give the appearence that they are in great shape to higher it's own assets. so to speak.

    Nah,

    Well I know that Wells Fargo expressed interest in buy WaMu. They have been looking to take a over a bank with a heavy East Coast presence since they have no branches out here on the East Coast. Wachovia was probably their last shot at that.
    "When one gets in bed with government, one must expect the diseases it spreads." - Ron Paul
  • ucsbledbetterucsbledbetter Posts: 173
    Yes they did sign an agreement but Citi did not have any stipulations in place to prevent Wells from doing what they did. Citigroup cant stop the bid, they can only sue and what court would put a further burden on the FDIC and force shareholders to almost nothing?

    Oh yeah, the republican supreme court! :) This will take years to figure out.
  • mammasanmammasan Posts: 5,656
    ucsbledbetter wrote:
    Yes they did sign an agreement but Citi did not have any stipulations in place to prevent Wells from doing what they did. Citigroup cant stop the bid, they can only sue and what court would put a further burden on the FDIC and force shareholders to almost nothing?

    Oh yeah, the republican supreme court! :) This will take years to figure out.

    This may not be true but I heard that there was a stipulation in the agreement that Wachovia could not entertain other offers.
    "When one gets in bed with government, one must expect the diseases it spreads." - Ron Paul
  • ucsbledbetterucsbledbetter Posts: 173
    "But here's the problem: Citigroup didn't follow the lead of J.P. Morgan Chase & Co. and force the deal's immediate consummation, as J.P. Morgan had done with Washington Mutual Inc. This was, in part, because Wachovia was in better shape, but also because panicked regulators wanted to stress that Wachovia had not failed. By banking standards, it didn't. By confidence standards, Wachovia had one foot in the grave. That was probably the reason Citigroup and Wachovia never signed an agreement that included a break-up fee, standard in any corporate merger contract. Who would break up a rescue?
    Wells Fargo would, it turns out, with a couple of conditions. First, that the Internal Revenue Service relax its limits on how much a bank could write off its tax bill if it bought another troubled bank. That came Tuesday. Then Congress neared a deal to pass the Troubled Asset Relief Plan."

    This is what I read on marketwatch.com
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