This deal appears to be much better for everyone involved.
Would make for the biggest retail bank in the country. Naturally, Citi is crying foul and the FDIC is standing behind its Citi deal. Anything that costs the people money, right? :rolleyes:
Wells Fargo ups the ante in $15B bid for Wachovia -- Newsday.com
Question: is there any 'good' reason for this deal to be blocked in favor of the Citi deal? From my limited reading elsewhere, Wells appears to be a better company right now. Accurate?
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Actually from what I've heard and read, the Citigroup deal holds the advantage for the taxpayers which is why the FDIC backs the deal. Obviously, the shareholders for Wachovia will benefit more in the Wells Fargo deal than in a C deal but who cares about them:unsure:
C also had a written exclusivity agrrement w/Wachovia.. This is definitely just the beginning of this saga. -
As a shareholder of those Evergreen funds I am just happy that there is so much interest in Wachovia .
However I tend to have liked the Citi groups offer better because it was only for the troubled banking division.
My Wachovia financial advisor was happy to see Wachovia get rid of it because it was dragging down the whole operation.
Now that blight will be assumed by Wells Fargo and that could drag them down too if they didnt make a good business plan .
Anyway I said before its a positive sign that two major financial institutions are interested in Wachovia -
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I was under the impression that the FDIC (us) would be on the hook for some of the negative additions incurred by Citi on the deal.
What are the facts here? -
No doubt the FDIC would have been on the hook for the Citi deal and thats what makes it attractive to those who are exposed like me.
However I am in the minority so the Wells Fargo deal looks good to everybody ...if they made a good business plan. -
Two points that I am looking at
1) the shareholders should decide which they prefer
2) the government should pull its guarantee from the Citigroup deal and tell them to pay for it themselves -
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Apparently it's unlikely that Citi would really need FDIC involvement and since they will be providing 10 billion to the FDIC up front, the FDIC essentially views it as a low risk/high reward, more or less.
That's my high level understanding of it anyway. It could be more granular than that. -
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the thing is the Citi deal was proposed/offered before the bailout bill was passed.... so you have Wells Fargo come in afterward and offer (essentially) more money. of course they're wanting to go with the Wells Fargo deal, which is better for the stockholders.
frankly, its refreshing to see two banks fight over acquiring another in this environment. :up:finswin56 likes this. -
Hallelujah, the Wells Fargo deal is all but done now:party:.