Citi held a conference call earlier to discuss the newly formed Shitichovia but I didn’t listen to it and for that I’m sorry (I feel slightly better about this knowing that Meredith Whitney was not in on the call either). If anyone was worried about this being a crap deal, DO NOT FEAR: Vikram Pandit reassured everyone that Citi looked at this thing for a while, and everyone feels pretty okay about it. Below are Big C’s talking points on the matter.
Download the PowerPoint presentation.
Update: The good people at Deal Journal listened in on the call. Choice moment: 11:19: Crittenden cannot stop kvelling. “We have a deposit base that is truly unassailable after this, the strongest in the country.”
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- Use the Bloomberg command
NH BLG_DEALBREAKER <GO>
to access Dealbreaker
This is an absurdly ridiculously good deal for Citi. FDIC fully insured it for $12bn. Their downside is severely limited here.
If anybody in Congress comes out of their secret room filled with hookers and blow long enough to look at Yahoo! News and sees this, it could mean trouble. Another bailout w/o their blessing while they’re arguing about whether to let them have the big one? They hate it when they look irrelevant.
If anybody in Congress comes out of their secret room filled with hookers and blow long enough to look at Yahoo! News and sees this, it could mean trouble. Another bailout w/o their blessing while they’re arguing about whether to let them have the big one? They hate it when they look irrelevant.
Citi and Morgan will never fail.
All is well, get out there and buy stocks and borrow money!
Dunno. All they’re getting is the commercial bank. Not the brokerage or investment management parts of WB. Looks to me like its simply a way to basically triple the number of retail branches, allowing C to catch up with JPM and BAC, which vaulted past them over the past few years while C was focusing on more wholesale business. Is retail, without investment management, really that good a business? Credit cards are juicy, but C already has a major share there. Agree there’s little downside, but I see nothing exciting here.
It’s cheap capital.
Crap! headed by Indian pandit
@5 – Don’t you remember that Citi sold its investment management business recently? why would it buy another one? and as far as brokerage, smith barney doesn’t need wachovia addition.
actually makes good sense to me. don’t know how the hell they will integrate it though. citi is a mishmash of too many odd cultures already, now add those guys from NC…
Citi Never Sleeps
Shity must merge with national shity to in order to survive
Wachovia= aren’t these the guys that bought The Money Store?
A wise man once said if you have nothing positive to say don’t open your mouth. This saying accurately captures this blog. All negative all the day on auto-pilot.
A wise man once said if you have nothing positive to say don’t open your mouth. This saying accurately captures this blog. All negative all the time on auto-pilot.
first timer @12/13 actually, that’s not true and also, why don’t you just stop reading then?
#12 has an overgrown sensitive clitoris.
SPODE
Pandit seems to think (I can’t confirm/deny) that Wachovia has a great retail technology platform. I’m sure they’ll be happy when it gets wiped out in favor of the 20+ year old Citi garbage
8 Why does it make sense? My position is that it cant hurt, but its hardly exciting to add lots of retail branches. More like Vik wants to tell the world my branch counts bigger than your. And while were at it, why wouldnt Wachovia Securities be a good addition to Smith Barney?
Citi sensed JP Morgan Chase moving up behind them, and felt it was their time to do a takeover just to show what level of players they really were. Citi is such a jumble that this doesn’t make much sense; on the other hand, what’s one or two more dysfunctional units?
Agree with 12 – this blog has become overwhelmingly negative. Hank Paulson and Bernanke are definitely not fools contrary to what the obviously genius writers of this blog believe.
19/12 Think about it. Its overwhelmingly negative because if you agree, there’s not much point in posting your comments. If you disagree, then fair game: 1) state your disagreement and 2) provide some support for your position. Problem is that often 1 happens, without being accompanied by 2. But thats the nature of blogs.
200 people on the deal team? Jamie Dimon is not impressed.
why is nobody talking about Wachovia’s Investment Bank