"Deal cried the loosers, as the winners told jokes!" - a little poker humor
Quit crying. Why would anyone in their right mind think that a 'taxpayer' funded aquisition would trump a privately funded buyout? Citi can't afford WB. Citi cant afford PART of WB (without govnt backing).
That crappy C / WB deal was signed at the point of a gun.
And anyone that thinks a cash infusion "saved" WB, I say proove it! Paying interest on an alleged loan, yes - anything more is retarded.
Suck it up - free market says that WB is worth $7. By all means, step up to the plate and bid! Or fold and shut the heck up.
Yes, it was signed at the point of a gun. But it had to be because WB was going under Monday morning. The FDIC did not want to pick up the tab so it tried to coerce a deal.
To me that is why C has a stronger case. Had C walked away when WFC walked away, WB would have been sold off like WaMu. WFCs opportunity only existed because C was their last Monday when the deal needed to be done.
Somebody on this board consistantly keeps raising the attributes of "honor" and "credibility".
Get a clue... there is no honor or credibilty between the CEO's of any of these institutions; Otherwise, they would be lending to us and to each other!
Money, honor, and credibility mix just about as well as oil & water!
They did give the same deal to WB and now WB is using the cover of some clarification of tax law as the basis for reconsideration.
C and WB were both present last Sunday.
Wachovia Corp. (NYSE: WB) - after WaMu's failure, the focus has shifted to Wachovia and at least two major banks, Citigroup Inc. (NYSE: C) and Wells Fargo & Co. (NYSE: WFC), were reportedly in talks Sunday to buy it. Wachovia shares are trading down 60% to $4 in pre-market action. C and WFC shares are down over 6.5% and 3.5% respectively in pre-market trade.
Wells Fargo biggest shareholder is Warren Buffett's Berkshire Hathaway Inc. It may have been helped in its bid by the issuance of an IRS notice Tuesday that makes Wachovia's loan losses more valuable as tax deductions. That in effect allows Wells Fargo to deduct, without limitation, the loan losses and bad debt deductions that Wachovia sustains following the acquisition. Given Wells healthy balance sheet it is likely that the cost of the deal to Wells will be entirely offset with tax savings. What we do know is that Wells is in much better shape than Citi Group.
It is apparent that someone, either Wachovia, Wells Fargo, Citigroup and/or their executives are responsible for a huge price drop, over 18% in Citigroup's stock on Friday. The losses are over ten billions dollars; that's a lot of exposure.
As for Wells Fargo it seems that they saw an opportunity when it seemed certain the Bailout Bill would pass Congress to jump into the bidding. I don't buy the IRS line they're putting out I think it was the opportunity to buy Wachovia and then dump all the non-performing mortgages and debt on the Federal Government.
Where does it go from here? I believe Citigroup not only has a legitimate case but a strong case given the FDIC basically said Wachovia was insolvent and brokered the deal the sale to Citigroup. Citigroup exposed themselves to tens of billions of Wachovia liability so there was subbstantial consideration on Citi's aprt.
Unlike a few of the Wells Fargo and Wachovia attorneys I believe the clauses in the agreement signed between Citi and Wachovia are valid, binding and enforceable. Most importantly this goes to trial one way or another in New York City.
A lot of investors lost a lot of money based on the intentions of Wachovia, the FDIC and Citigroup as well as a very important signed document between the parties. If not Monday the class actions will becoming shortly thereafter. Remember Warren Buffet's also bet heavily on U.S. Airways and that investment didn't work out so well. You can be sure he will be deposed in the forthcoming lawsuits; Wells Fargo put the FDIC and Treasury Department in a terrible position and partly because they could dump back a lot of the crap to them when they saw the Bailout Bill would pass.
what they have offered. With tortious inteference claim, Wells Fargo certainly will go bankrupt. WB will be downgraded to junk status as well.
WM= .16 cents...period
WFC walked away from WB...period
No Citi intervention WB= .16cents...period
After some rules changes that would allow WFC to bump losses to turp (taxpayers) they're trying to take away a FDIC approved deal with city...period
Last one willing to make a deal? Don't you mean Wells Fargo? They appear to be the last one willing to make a deal!
AND !!!!!!!!!!!! It is easy to be willing to make a deal if you have other presons (ie. taxpayers) willing to fund it.