Interesting New Information Regarding Wells Fargo vs. Citigroup and Wachovia

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This relates to last Friday's thread about the proposed merger of Wells Fargo N.A. and Wachovia.
http://www.democraticunderground.com/discuss/duboard.php?az=show_mesg&forum=389&topic_id=4162916&mesg_id=4162916

I had said that "Citi is trying to rob Wachovia at gun-point, and the Federal Government is driving the getaway car."





"Some" had said that I didn't know what I was talking about.

:rofl:

It was clear from documents filed in federal court Sunday that Wachovia was in considerable trouble when it agreed to the deal. Wachovia disclosed that it agreed to the deal "with the understanding that a seizure of its banking assets later that day by the Federal Deposit Insurance Corp. would occur" unless it accepted Citigroup's proposal.
Read more at: http://www.chicagotribune.com/news/nationworld/chi-wachoviaoct06,0,1677807.story

[redstate_democrat]

1. Same fucking thing happened to WaMu

You have the FDIC closing banks just to give them to other banks on the cheap. Fucking criminal shit happening right now

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2. Exactly. Lehman Brothers and Bear Sterns were used as examples...

If you don't comply, you will fail.

Bank on it.

[Selatius]

3. The way you describe it sounds like a mafia war between rival banking clans.

If that description is approaching reality, I wouldn't be surprised.

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4. In a way, you are right.

Wells Fargo, however, proposed a deal that preserved, at least a portion, of shareholder equity.

Citi wanted $1.30 for pieces of Wachovia.

Wells Fargo gives WB shareholders $6.00-$8.00 and eliminates the possibility of insolvency for the pieces that Citi didn't want.

[spag68]

6. Wachovia

You are right, but you left out that WF deal has no taxpayer cost, while the Citi deal has fed. backing and guarantees.

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7. You are right! I did leave that out!

Typically, the taxpayer dollar (and the FDIC fund...) is usually not involved in mergers and acquisitions.

Silly me.

:)

[Hannah Bell]

13. how's that?

[malaise]

19. Bingo n/t

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5. Kicking because this week this is going to be major freaking news

Theft is frowned upon in the USA.

At least I hope so.

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8. Kicking

This really is a big deal, folks.

Trust.

[Sebastian Doyle]

9. Tony Poodle Blair works for JP Morgan Chase. The Saudis own a big chunk of Citigroup

Seems as though the Bush Crime Family is trying to consolidate the entire US banking industry into their own circle of friends. I'm actually surprised the Carlyle Group hasn't bought a bank yet.

[cui bono]

14. Hm. Would be interesting to see a flow chart of all these mergers and

acquisitions lately and see whose hands they are all going into.

And what about the "consultants" being hired to oversee the $700bn bailout? Are they part of the same usual suspects?

[gopbuster]

10. The problems at Wachovia were not totally unexpected

The problem mainly the failure of a CEO who had made some bad investments, mainly buying a California based mortgage lender (Golden West) that was bleeding money due to the declines in real estate market. As early as Oct of last year WB was a $50 stock until the problems started showing up, losses were mounting. By June of this year the stock was beaten down to around $10 and it's financials were deteriorating even worse. The 80% loss in stock market capitalization I'm sure had much to do with it's ability to borrow as it kicked up it's capital and asset/debt ratios. It was ripe for take over and there was already talk that Wells Fargo or Chase might pick it up.

This is the way the game is played

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11. Wells Fargo is not hostage to the current Wall St. problems.

Wise investments make Wells the strongest US-based bank in the world.

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12. In My Neighborhood, they call that "duress"

t was clear from documents filed in federal court Sunday that Wachovia was in considerable trouble when it agreed to the deal. Wachovia disclosed that it agreed to the deal "with the understanding that a seizure of its banking assets later that day by the Federal Deposit Insurance Corp. would occur" unless it accepted Citigroup's proposal.

:wtf:

[Norrin Radd]

15. kr

[no_hypocrisy]

16. Resembles the gov't using eminent domain principles on bank assets as opposed to real property.

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24. Exactly!

Under the guise of regulation

[Beausoir]

17. You are and were 100% correct. The FDIC had basically seized Wachovia and was threatening to pull

the trigger.

This is just insanity!

WFC has been prudent in their loans and are definitely in a strong position right now.

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18. Amazing, isn't it?

They almost got away with it.

[Indenturedebtor]

20. It's all growing clearer by the second. They're gathering all of the threads of society

They will control everything soon: your place of worship, your city council, your police, your army, your congress, your courts, your mortgage... everything.

Luckily I don't have shit and if they keep the borders open I'm out. But fuckin-a... nasty world domination type shit going on here.

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26. Waxman is holding hearings now on the bankruptcy of Lehman Bros

Check out CSPAN.

The witnesses seem to be telling the truth about all of this...

[Jane Eyre]

21. Big news in Charlotte

The Wachovia story has rated huge headlines from the Charlotte Observer every day for the last week or so. It is the second largest employer in the city.

Also of interest is the fact that Charlotte mayor Pat McCrory is the Republican nominee for governor. And another fact is that the current CEO of Wachovia, Bob Steel, left his job as under secretary in the US Treasury Department in July to take over the helm of Wachovia after CEO Ken Thompson was basically forced out by the Wachovia stockholders. Steel was thought by many to have been brought in because of his government ties in order to bail out Wachovia. He has battled that image by purchasing both a home in Charlotte and a whole bunch of Wachovia stock at $15 per share.

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22. Thanks for that information

:thumbsup:

[Jane Eyre]

23. And did I add that NC is now considered a battleground state?

Three visits by Barack Obama in the last two weeks, and now Sarah Palin will be in NC tomorrow.

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25. I can't wait to see the results from NC on 11/4.

We got it.

[Jack from Charlotte]

31. May I point out that Ken Thompson, ex-CEO of Wach, was a repug who openly...

supported G. W. Bush, The AWOL/Moron. Thompson is the guy who paid about $25 to $30 billion in cash for $300 billion worth of bad mortgages in '06 that essentially bankrupted the bank.

Heck of a job, Kenny.

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32. Shocking!

What a stupid move.

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27. Troll from the American Enterprise Institute is on CSPAN

Testifying before Waxman's House Gov't Reform Committee.

Oversight is bad.

Oversight hurts liquidity.

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28. ...

:kick:

[moodforaday]

29. K&R

:kick:

[Supersedeas]

30. will there be a Citi Fargo compromise -- what will they rename all of the bank branches in the South