Citi: Wells Fargo blocked from buying Wachovia

[Chreamps]

This just keeps getting more interesting? Link (Citi:%20Wells%20Fargo%20blocked%20from%20buying%2 0Wachovia)

Sorry, that was late last night and now I can't find it. Here (http://news.yahoo.com/s/ap/20081005/ap_on_bi_ge/wells_fargo_wachovia;_ylt=ApeaUU2VzVSoaYJKWxh_faOs 0NUE) is the latest from today on Yahoo.

[vegaschristina]

Your link's not working.

[Amanda Rockwell]

This pretty much sums it up

Citigroup says it has an exclusivity agreement that bars Wachovia from talking with other potential buyers. Its shares fell sharply after the surprise announcement of the Wells Fargo-Wachovia agreement.

Everyone knew citi bank was going to bail them out as soon as they went down.

[NellieRose]

Imagine, they get an offer of more money from another company and it gets blocked. Granted if there was a legit contract in place disallowing a sale to another party but has it been established that Wachovia could not court other interested parties?

Wells Fargo should be on some solid ground as they don't sell off their mortgages and in turn have better lending practices than most out there.

[vegaschristina]

Imagine, they get an offer of more money from another company and it gets blocked. Granted if there was a legit contract in place disallowing a sale to another party but has it been established that Wachovia could not court other interested parties?

Wells Fargo should be on some solid ground as they don't sell off their mortgages and in turn have better lending practices than most out there.

If you have an exclusive contract, then they should not have been courting other interested parties. Bad faith in my opinion.

[ayaandjudah]

my dh works for citi and they were touting it as a done deal last monday. he said they did have an exclusivity agreement and they're seeking/received and injunction to stop the Wells deal.

[Chreamps]

Now Citigroup is suing Wachovia and Wells Fargo for $60B. (http://news.yahoo.com/s/ap/20081006/ap_on_bi_ge/citigroup_wachovia_lawsuit;_ylt=Ave2zmG4cXFn2LYyEx hHnRhv24cA)

[Hummie]

I have not opinions to offer, just want to say thanks to Chris for keeping me apprised on all this stuff (in several threads you started). I feel I don't have time to keep up, but you give me the good stuff.

[Chreamps]

Thank you, Hummie, but I really should be doing all that other stuff that I should be doing instead of this "worrying". Couldn't tell you how long it's been since I've scrapped and that is why I come to this forum in the first place?

[tcscrapper]

I'm starting to think I need to open accounts at numerous banks!!!!

I currently bank with Washington Mutual (or JP Morgan Chase)... I have two checking accounts (one for me and DH and one for our daughter's Social Security) and two savings accounts (one for me and DH and one for our daughter's benefit money)...

We just opened a checking with Bank of America... We are debating if we want to TOTALLY switch over. We switched because of an offer they had for online banking ($50 deposit sometime before 90 days, the rounding program with the savings accounts, and they offered us a Boston Red Sox debit card). I think the debit card was the "clincher" for DH!!! LOL!!!

I am just so worried about all this banking problems... I do know that Bank of America is the top bank, followed now by JP Morgan Chase...

I just feel like I should be cashing checks and putting the money under my mattress!!!

[Amanda Rockwell]

LOL I don't doubt you're the only person feeling this.

I would just stick with big banks like chase and bank of america. I have chase because of their awesome rewards card!!! My husband (our main account) had to bank with bank of america because of the military, and now they're telling them they're going to have to switch. Not sure why. I keep telling him to join me and my rewards LOL but I think we're just going to switch that main account over to usaa. That's where we do our investing and car insurance anyway. We even have one of our vehicle loans with them.

If you're military go to USAA for car insurance. It's cheap!!

[ccubed]

my dh works for citi and they were touting it as a done deal last monday. he said they did have an exclusivity agreement and they're seeking/received and injunction to stop the Wells deal.

Despite the argument of Citi exclusivity, Citi's initial purchase of Wachovia was contingent upon FDIC assistance and the deal was not for purchasing Wachovia as a whole. The proposed Wells Fargo deal was without fed assistance and for the entirety Wahcovia. If a free market entity can take care of this deal without federal assistance, then it is to the benefit of all.

I am glad the plan is still changing and I am pleased with the new direction it has taken. The new tentative plan involves carving Wachovia and splitting it between Wells and Citi and this transaction would proceed without federal assistance. :clap

Furthermore, it keeps the banking industry from narrowing any farther to just a few industry giants. If the banking industry gets any smaller, it will be the consumers who suffer in the end since just a few banks would control the price of loans and other services.

On a personal note, I am also glad that my long time bank won't be absorbing the entirety of Wachovia's bad debt.


I'm starting to think I need to open accounts at numerous banks!!!!

I am just so worried about all this banking problems... I do know that Bank of America is the top bank, followed now by JP Morgan Chase...

I just feel like I should be cashing checks and putting the money under my mattress!!!

Well, it is not a bad idea to have accounts at a few different places. We have relations with 6 different banking/credit institutions for various reasons and benefits NOT because we are afraid. I personally thought Wells was going to be one of our weakest links and was pleasantly surprised to find that for the most part they continued to practice reasonable lending standards during this entire debacle.

I don't know what you meant when you used the term "top bank" - - it is important to keep in mind that biggest bank is not equal to best bank. In addition, I strongly encourage individuals to establish a relationship with a long-standing, reputable credit union.

Personally, DH and I continue to have confidence in our banks/credit unions and the FDIC/NCUA - - we haven't pushed the panic button yet and don't plan on hiding money in a mattress any time soon.

Best wishes to all during these trying times! :)

[tcscrapper]

I don't know what you meant when you used the term "top bank" - - it is important to keep in mind that biggest bank is not equal to best bank. In addition, I strongly encourage individuals to establish a relationship with a long-standing, reputable credit union.



"Top Bank" meaning quantity, not quality. Should have said "largest".

And I agree, it does NOT equal the BEST bank... I don't quite know if there is a BEST bank out there right now!!!

To one of the other posters talking about Chase... What rewards card???? We haven't gotten anything from Chase yet about the buyout of WaMu... Just a little blurb change of a name on their website... NICE. Would have loved a letter entailing what we will be going through in the next few months...

I get the savings "rounding up" rewards with Bank of America... We used to bank with them when we were military...

I'll have to call USAA for a car insurance quote!!!