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Author Topic: Citicorp has a temper tantrum  (Read 371 times)

Offline Nwbie

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Citicorp has a temper tantrum
« on: October 03, 2008, 03:03:17 PM »
Citicorp needs Fed money - Wells Fargo Doesn't - how will the fed react?
anyone want to setup a betting pool?

http://news.yahoo.com/s/ap/20081003/ap_on_bi_ge/wells_fargo_wachovia



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Offline Fangio

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Re: Citicorp has a temper tantrum
« Reply #1 on: October 03, 2008, 03:09:58 PM »
I find this VERY interesting!

Wachovia first puts together a deal with some Fed help to sell all their banking operations to Citi. But the deal is not signed or finalized....   BUT,  Citi does have an agreement with Wachovia for exclusive rights to negotiate with Wachovia to put together a deal.

Then Wells Fargo makes Wachovia a MUCH better offer to buy up all the operations and this deal requires nothing from the Fed or Treasury its an entirely free market deal. 

Wachovia figures they are going to get sued either way.  If they take the Citi deal, the shareholders will sue for not maximizing their returns by taking the offer that yielded a higher return. If they take the Wells deal then Citi will sue saying Wachovia violated the exclusive negotiating deal.

So Wachovia is taking the bigger Wells Fargo offer and apparently will fight Citi by saying that they DID NOT negotiate with Wells Fargo, rather then simply accepted an offer that was put on the table with no negotiations required.....

My prediction?   Lots of lawyers are going to make LOTS of money!




Fang
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Offline Curval

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Re: Citicorp has a temper tantrum
« Reply #2 on: October 03, 2008, 03:15:16 PM »
Quote from: Fangio on October 03, 2008, 03:09:58 PM
My prediction?   Lots of lawyers are going to make LOTS of money!

THAT is a safe bet.
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Offline oakranger

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Re: Citicorp has a temper tantrum
« Reply #3 on: October 03, 2008, 03:21:28 PM »
Quote from: Nwbie on October 03, 2008, 03:03:17 PM
Citicorp needs Fed money - Wells Fargo Doesn't - how will the fed react?
anyone want to setup a betting pool?

http://news.yahoo.com/s/ap/20081003/ap_on_bi_ge/wells_fargo_wachovia


 






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« Last Edit: October 03, 2008, 03:23:41 PM by oakranger »
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Offline Bodhi

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Re: Citicorp has a temper tantrum
« Reply #4 on: October 03, 2008, 03:33:19 PM »
Messed up.  But I agree, Wells Fargo was the better option.
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Offline Elfie

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Re: Citicorp has a temper tantrum
« Reply #5 on: October 03, 2008, 04:05:00 PM »
Quote from: Bodhi on October 03, 2008, 03:33:19 PM
Messed up.  But I agree, Wells Fargo was the better option.

Wells Fargo is the better option by far for taxpayers since we don't have to put up any money for the buyout.

It also sounds like the deal with Citicorp wasn't finalized yet, so maybe Wachovia can actually back out of that agreement w/o getting sued.
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Offline Chalenge

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Re: Citicorp has a temper tantrum
« Reply #6 on: October 03, 2008, 04:14:39 PM »
Wells Fargo has been a good investment since... forever.  :aok
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Offline SirLoin

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Re: Citicorp has a temper tantrum
« Reply #7 on: October 03, 2008, 06:21:43 PM »
City Bank was fined 3 billion dollars 4 years ago for fraud..They want bailout money now?
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Offline Ripsnort

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Re: Citicorp has a temper tantrum
« Reply #8 on: October 03, 2008, 06:27:35 PM »
Wells Fargo carries our mortgage.

Speaking of which, if your bank that carries your mortgage goes tits up, does the new "owner" still carry the same interest rate? Just curious as I have 9 years left to pay on our house (and we're at 4.5% interest rate!)
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Offline Hornet33

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Re: Citicorp has a temper tantrum
« Reply #9 on: October 03, 2008, 06:29:29 PM »
Yeah this one I'm watching. Wachovia is the outfit that handles my companies 401K accounts. They screw up my retirement plan, and I'm shooting someone :furious
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Offline Urchin

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Re: Citicorp has a temper tantrum
« Reply #10 on: October 03, 2008, 09:23:18 PM »
Yea Rip, the new owner keeps the same terms you had with the old one.
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Offline lazs2

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Re: Citicorp has a temper tantrum
« Reply #11 on: October 04, 2008, 10:39:42 AM »
wells fargo carries what little is left on my home but my bank is a local conservative one that is not affiliated with any other.

lazs
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