So Citi wants WB to honor their agreement which calls for a handover from FDIC to Citi while the agreement with WFC does not involve FDIC. I’m already sick of bailouts. We need an amendment to the bailot bill that says that if FDIC helps now that Citi is done with gov’t help. Edit: BTW - To add to the Paulson, Good or Bad? debate - So Treasury is giving away money to get the deal done while the deal could be done without giving away money. Nice trade, Henry. Market is offering to do it for free and you are pulling out your, uh, my wallet.
2 weeks ago, nobody wanted banks, today people are fighting over banks.
I feel very sorry for those poor unwanted banks. Sniff.
Probably because after the senate passed the bill, and it looked like the house was going to pass the bailout bill, WFC felt it could risk paying more for WB.
It’s now a flat out race to scoop up the banks with the turdiest assets because they all know they can dump’em on us taxpayers. The good news: I always hated that name “wachovia”. I won’t be hearing that any more!
Looks more like Citi see the bailout package can pass, and Citi wanted WB’s retail branch network.
I think Citi deal is better for CMG. If WB in its entirety gets acquired… Wells Fargo has a pretty good sized institutional AM group…
the Citi deal is better for Chipotle Mexican Grill?
Someone told me that there was some accounting rule that was changed which made it a good deal for WFG to aquire WB in its entireity. He didn’t understand/wasn’t able to give me any details. Anyone know what he was talking about?
Yeah I agree. CMG has been hitting year lows and investor confidence in the markets has a strong correlation to a nice refreshing Dos Equis and Burrito after a long day.
totally, I know that with the markets being shaky I just haven’t been able to eat my chicken burrito anymore…talk about trickle down effects of this situation
nolabird032 Wrote: ------------------------------------------------------- > Someone told me that there was some accounting > rule that was changed which made it a good deal > for WFG to aquire WB in its entireity. He didn’t > understand/wasn’t able to give me any details. > Anyone know what he was talking about? It must be the relaxing of the mark to market accounting rules. The SEC said that you can mark to model (or something) securities for which there is not a liquid market. I don’t think that’s agood explanation of the situation and I don’t really care. It’s too bad that C thinks that their deal obligates the US gov’t to do something. I can’t believe that they think they are entitled to my money for something.
haha - I love Chipotle (their food)
i was thinking it was the MTM rule too, but when i asked, he seemed to think it had something to do with the difference of buying only part of a company vs. the whole shebang.
CMG = Capital Management Group = Wachovia Securities + Asset Management, Wachovia Retirement Services + Wachovia Insurance Services
CMG=Chipotle Mexican Grill WFC=Capital Management Group = Wachovia Securities + Asset Management, Wachovia Retirement Services + Wachovia Insurance Services
But wouldn’t Citi just cut off Wachovia’s Capital Management group from the merged company?
projectplatnyc Wrote: ------------------------------------------------------- > But wouldn’t Citi just cut off Wachovia’s Capital > Management group from the merged company? Yes. It is probably better for CMG to stay independent than be eaten by a company that already has those lines of business… There is a ton of product overlap… people are going to lose their jobs… no matter how much Wells or Wachovia sugar coat the situation.
Gov’t should step in if Citi goes too far with this. WFC is a truly private (and superior)solution vs putting taxpayer money at risk (and subsidizing citi’s bid). Force majeure / should apply here, citi needs to take a seat, and thank their lucky stars they even exist. Anyway, I think citi is in pretty dire straights itself, they may be the next to go after the smoke clears. citi buying wb wasn’t doing anyone any favors (how does 2 weak banks merging make it better…only bigger).
not that it adds much to the conversation, but in the words of my grandpa: “Citi is being run by a turd-ball”