Breaking: Banks fight over 'scraps'

Citigroup and Wells Fargo are fighting over buying Wachovia which was about to go belly up.

Bloomberg

Citigroup had a deal to buy Wachovia's banking operations for $2.16 billion in a government-assisted rescue.

Wells Fargo {with Buffet assisting, I hear} bids 15 billion for the whole company with no Fed intervention.

Seems obvious to me which is the better deal for everyone.


- evidently Citi isnt as smart with the ball as Chase is. Since Dimon left Citi for Chase, that is. Dimon picked up WaMu retail branches for pennies.

Heh.
- - - - - -- - -
{snark}
BTW: I hope there's some of of you who think we wouldnt have gotten into this 'if we had just been as sophisticated and smart as the Europeans.

Because I want to see you eat sand!

They are in worse shape than we are on this account. The reasonn Paulsen bailed out AIG was becuase the euro's begged him to.
Seems they dont have as many 'watchdog' rules as we do and what they have they often ignore.{/snark}

Right now Japan is in a serious start to depression, but because of other factors than just banking problems.
Russia claims their system is better than our capitalist system. But no one can get a loan in Moscow... well, then....

China, alone, seems to be the main beneficiary and you can bet every freaking cent the dollar goes up on the Euro and Yen, they're making a mint.

 

Wahoo! Wachovia Picks Wells Fargo

There's only two items of good news on the money front;

One: At Speedway/SuperAmerica's 'Home Station' {1/2 mile from Corp HQ in my little burg} last night, Regular gas was priced at $3.23
- How much of the drop is based on the world economy; how much on the drilling bill, crap as it is, passing? You tell me.. no idea.

Two: Wells Fargo's $15 Billion bid for ALL Of Wachoviaas against Citigroup's cherry-pick offer is going to go through. This means it wont cost taxpayers one dime, because the Wachovia shareholders will now only accept a bid for the whole operation.

 

RE: Wahoo! Wachovia Picks Wells Fargo

Wells deal is clearly a much better deal than Citi's. My neighbor works for Wachovia Securities and has had two of the toughest weeks in his career with all the news, conference calls, and upset investors. This bailout, while against my principles of small government seems neccesary to instill confidence again.

Citi wanted guarentees from the government in their deal while as the link notes, Wells is just a regular old takeover. Good news finally. I work with all of these banks and couldn't be happier to see Wamu and Wachovia gone. Wamu especially is a poorly run bank even before this all happened.

 

Re: RE: Wahoo! Wachovia Picks Wells Fargo

And ... GEE!... we couldnt have possibly GUESSED that from all of a sudden seeing WaMu commercials EVERYWHERE on TV in the last year.

Unless you noted they actually promised no benefits for switching your accounts.