Citigroup demands Wachovia end Wells Fargo Merger.

[Dr.Phool]

Source: MSNBC.com

Wachovia at the center of big banking brawl
Wells Fargo swoops in with offer, but FDIC backs first Citigroup bid


MSNBC News Services
updated less than 1 minute ago

NEW YORK - Citigroup demanded that Wachovia call off a proposed deal with Wells Fargo Friday, saying it has an exclusive deal to buy Wachovia’s banking operations, as the three financial institutions became embroiled in a banking brawl.

Earlier Friday, in an abrupt change of direction, Wachovia said it has agreed to be acquired by San Francisco-based Wells Fargo in a $15.1 billion all-stock deal. That deal trumps Citigroup’s plan, announced earlier this week, to acquire Wachovia’s banking operations.

The Citigroup deal would have been done with the help of the FDIC, but the Wells Fargo deal for Wachovia will be done without it. Shares of Wachovia and Wells rose in morning trading, while Citigroup’s shares fell.

(more)

Read more: http://www.msnbc.msn.com/id/27005897/

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So far just a breaking news banner. Will update.

I guess Citi is pissed off because they stole Wachovia fair and square.

[Demit]

1. So they're fighting over a failing financial institution? Makes me more suspicious of this 'crisis'

I probably don't understand the ins and outs, but it doesn't make me feel the panic I'm supposed to about how the world will end unless the Fed rides to the rescue...

[Dr.Phool]

3. From deeper in the article. $$$$$$PROFITS$$$$$$$

While the proposal would have prevented most banks from profiting on the sale of troubled assets to the government, an exception would have been made for assets acquired in a merger or buyout.

That would have allowed Citigroup to sell Wachovia’s distressed mortgage-related assets to the government for a profit.

[Demit]

6. So the money boyz are already figuring out how to game the bailout, and the bill hasn't even

passed yet? What's the French saying, about the more things change, the more they stay the same?

This is magic elixir we're being sold—from the back of the Bush Family traveling wagon.

[w4rma]

4. Lots of folks with lots of capitol will make alot more money soon. (nt)

[olddad56]

17. citigroup wants to to gain the 'too big to fail' status. They want some of tah 700 billion.

[CubicleGuy]

2. Hey! That's supposed to be my life preserver, not yours!

Starting to sound like there's not enough lifeboats on this here Titanic.

[LeftHander]

5. Banking Wild Kingdom

[Supersedeas]

12. where do we fit in?

[ooglymoogly]

7. The same folks who picked the bones of the great depression

are on the job today and nobody better get in their way.

[CreekDog]

8. I guess I should hold off on ordering new checks

:eyes:

[Raine]

13. Two days ago new checks from Wachovia

arrived for me. :argh:

[DJ13]

9. ..........

[freestyle]

10. Sounds like the WF deal involves no taxpayer money.

Why would the FDIC be anxious to be involved, when a less costly (to us) deal is on the table? Soemthing smells.

[FarCenter]

11. If you can't flip houses, flip banks

Actually, a Wells Fargo deal makes sense. They can save some dough by shutting down Wachovia's ex-Golden West branches in California.

Also, Wells has the staff and systems to get the most out of foreclosing the California real estate with Golden West mortgages.

[chill_wind]

14. Here's another thread also + more links

http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=389x4162916

[BrklynLiberal]

15. Right..Why should they turn down 15B when Citigroup will give them 2B..?

[Xithras]

16. Citi thought they could pull the same scam JPMorgan pulled on WaMu

Screw the shareholders, let the taxpayers absorb the loss, make a profit on the loss-heavy asset transfer to the government, and acquire billions of dollars of good assets at fire sale prices. The deal had everything a vulture-capitalist could love.

WB and Wells Fargo worked out a deal that was fair to everybody, and avoided any taxpayer liability. Shareholders keep their money, the bank stays solvent, and nobody gets screwed. An outcome like that is unacceptable to todays crop of CEO's, and Citi is crying foul because of it.

[truthisfreedom]

18. That's OUR BANKRUPT CORPORATION! Dibs! WE HAVE DIBS, #&$%*#$#!!!