NY Times: Wachovia talking with CITI

[MattH]

http://dealbook.blogs.nytimes.com/2008/09/26/wachovia-begins-early-deal-talks-with-citi/index.html?hp

Wachovia has begun preliminary talks with Citigroup about a potential merger, people briefed on the matter said Friday afternoon.

Feelers have also been extended between Wachovia and Wells Fargo and Spain’s Banco Santander, these people said.

These talks are early, however, and no deal may emerge from them. But it appears that Wachovia is seeking out potential alternatives should the financial rescue package being debated in Washington is not quickly passed, or fails to provide enough help.

[Anonymous]

The bailout is not going to be there in time for them - CITI was taking notes on Chase/WAMU.

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MattH wrote:
http://dealbook.blogs.nytimes.com/2008/09/26/wachovia-begins-early-deal-talks-with-citi/index.html?hp

Wachovia has begun preliminary talks with Citigroup about a potential merger, people briefed on the matter said Friday afternoon.

Feelers have also been extended between Wachovia and Wells Fargo and Spain’s Banco Santander, these people said.

These talks are early, however, and no deal may emerge from them. But it appears that Wachovia is seeking out potential alternatives should the financial rescue package being debated in Washington is not quickly passed, or fails to provide enough help.

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[Anonymous]

We'll be taking all of our business from Wacky to "State Employees Credit Union" (if everything works out and DH takes the new job) within 6 months.

I doubt Wacky will be sad to see us go ... but we won't be sad one bit to leave'em!

[MattH]

According to an AP story, the FDIC has arranged yet another shotgun merger:

Citigroup will absorb up to $42 billion of losses from Wachovia's $312 billion loan portfolio, with the FDIC covering any remaining losses, the government agency said Monday.

http://news.yahoo.com/s/ap/20080929/ap_on_bi_ge/wachovia_citigroup;_ylt=ApCZLZe3uhJD_AWiSwqfGVkDW7oF

[Anonymous]

Yep-

We are going to see a MAJOR sell off of bank stock for days and weeks-

All of the WAMU and WACKY investors got screwed- including those with low risk prefered bonds and stock

No one is going to provide this source of funding to any bank for a long time-

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MattH wrote:
According to an AP story, the FDIC has arranged yet another shotgun merger:

Citigroup will absorb up to $42 billion of losses from Wachovia's $312 billion loan portfolio, with the FDIC covering any remaining losses, the government agency said Monday.

http://news.yahoo.com/s/ap/20080929/ap_on_bi_ge/wachovia_citigroup;_ylt=ApCZLZe3uhJD_AWiSwqfGVkDW7oF

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[haulingthescoreup]

Another article:

FDIC: Citi to Buy Wachovia’s Banking Operations

[MattH]

Now it's a battle in the courts between Citi and Wells Fargo over what's left of WaMu:

http://news.yahoo.com/s/ap/20081005/ap_on_bi_ge/wells_fargo_wachovia;_ylt=AqbfNwYdNQ4Pzw1Xa9Z12BsDW7oF

Since one of the blunders that killed WaMu was selling a big chunk of its safest mortgages to WF so they could go after higher-rate junk, an acquisition by WF would be more than a little ironic.