Would not be surprised if compromise deal is announced Monday before the open.
Wachovia has been left out of talks; its the Feds, C, and WFC.
So looks like C will get something substantial which is better than Friday situation.
Even if Citi gets half of WB for free, limiting exposure to the bad debts may still be an issue. Pandit seemed so proud of that risk mitigation feature of the first agreement.
Maybe they can just sell it all to the TARP now.
If Wachovia is being left out of the talks, the FDIC will be taking over the bank. Good for them.
The FDIC can/should stop this circus tomorrow.
All deals are off, FDIC siezure. Citi and WFC split the company.
Wachovia shareholders get what Washington Mutual shareholders got.
That's what's best for taxpayers!
Run on Wachovia Bank tomorrow...IMO.
It sounds like the FDIC double-crossed Citigroup. On one hand, they broker a deal between Citi & WB, signing their own agreement with Citi. Then, behind Citi's back, AND after Citi has stepped in preventing a bank-run on WB, the FDIC inserts language into the bailout bill undermining the Citi-WB agreement.
I agree but they view this MUST be resolved prior to Monday...that's the difference here. I guess Citi may get some of the better parts IF they drop their suit....that probably gives some leverage.
In any event I do not think the FDIC will tap WFC on the shoulder any time in the future. WFC threw the monkey wrench into the whole thing and created this mess. Citi should get a pat on the back from the goverment which will help some time in the future on some other deal.