Citigroup and Wells Fargo Said to Be Bidding for Wachovia

[Trout Maharishi]

The Wells Fargo deal looks to be much better for Wachovia. I think it will allow most of the jobs to remain in NC. Looks like the stock holders will come out a ltittle better to, $7 vs $1 a share is what I think I heard.

[trout_boy_II]

I agree with you - much better than the Citi deal all around and, it doesn't require the guvment, which is a plus.  It still will have a negative impact on W-S and Charlotte, but I assume Charlotte will become the East Coast headquarters for WF, so I think my assumption in my earlier post is accurate - fewer loss of jobs.  I hope I'm right for those folks.

TB

PS - I wonder how it will affect my Wachovia account?  Can I get a stage coach on my checks?  "Oooooh, the Wells Fargo wagon iiiiis a cumin down the street..."

[Woolly Bugger]

yea, up $3.00 to $6.92 a far cry from the 52 wk high of $52.25

so $1000 purchased a year ago would be worth $132 today.

Question would be how much of the NC gvmn't pension funds were in WB?

[troutphisher]

Wow! imagine that....the free market does work.

To bad the Senate does not see this.......

[peter p]

However, watching CNBC this morning before the open, they said this probably would not have happened if the bailout didn't seem imminent.  So, which came 1st, the chicken or the egg?  Who knows? 

[Flatlander]

Wow! imagine that....the free market does work.

To bad the Senate does not see this.......

Maybe...but would Wachovia have survived the week had not the FDIC backed the initial deal with Citi? Citi supposedly has been providing liquidity support to Wachovia since Monday to keep it afloat.

[trout_boy_II]

Wow! imagine that....the free market does work.

To bad the Senate does not see this.......

Maybe...but would Wachovia have survived the week had not the FDIC backed the initial deal with Citi? Citi supposedly has been providing liquidity support to Wachovia since Monday to keep it afloat.

Based on my contacts - no.  Major brokered deposit redemptions instead of rollovers and no counterparty availability.  Even if you have N/W, no cash flow equals insolvancy!  My information is third hand, so it may not be correct, but I doubt they would have done what they did with the FDIC and Citi if something to that order of magnitude had not been there.

I agree that I would always prefer a "market solution" in ordinary times.  We were (are) faced with extraordinary times.  That's why a much more sober House is passing the legislation as we speak.  I hope it is not too late. 

TB