The FDIC insists that Wachovia didn’t fail. No really. They swear. So the fact that it is the FDIC that is making the announcement that Citi is buying the banking operations of Wachovia is really just coincidence. Seriously. See, we call it “open bank assistance.” As you can see that takes the emphasis off of negative and dangerous words like “failure” and refocusing attention on “open.” They were considering a “running bank rescue,” but that was before Sheila Bair pointed out the fact that a “rescue” implies distress and “running” sounds a lot like the bank executives are fleeing the jurisdiction.
Oh, Citi is assuming Wachovia’s senior and subordinated debt, but that’s just because Citi is an organization filled with generous souls who were moved into doing something to “give back to the community” after watching a really touching dog food commercial last night. You know, the one that asks “Shouldn’t you give the best to him too?”
FDIC: Citi to Buy Wachovia’s Banking Operations
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FART PISS MAYO DOG DIARRHEA CREDIT DEFAULT CHUCK PRINCE CUMS BACK FROM THA DEAD
good luck with that, Pandit :roflcopter
Hank should just write a check for $750B to the FDIC. They’re the ones who will be holding the bag.
what;s o/n libor at?
Take that North Carolina. You thought you were hot-shit for a couple of weeks didn’t you?
New York Rules! WOOOOOOT!
Libor = Rocketman
@5, funny shit.
WTF is going on around here! All these banks just keep getting gobbled up…someone is going to get indigestion and lay a turd..
3.70S LIBOR I think
nothing abnormal
Wachovia was a turd to begin with
LIBOR/OIS at 2.2
if wachovia didn’t fail and the equity is priced at zero, can shareholders just say no?
Charlotte is fucked
@9…Citi eats shit for breakfast!
“You eat pieaces of shit for breakfast?”
Can someone elaborate as to how much WB shareholders will get per?
Will open under $1, so shareholders should be expecting…?
This makes me a sad panda.
-Dick in CLT
From the link: “Under the agreement, Citigroup Inc. will absorb up to $42 billion of losses on a $312 billion pool of loans. The FDIC will absorb losses beyond that. Citigroup has granted the FDIC $12 billion in preferred stock and warrants to compensate the FDIC for bearing this risk.”
So….um….isn’t this like a FDIC sponsored bailout?
This is just hysterical
Dear Wachovia -
Sorry I ran your company into the ground. If I wasn’t such an idiot, I wouldnt have acquired Golden West.
- Ken
@16: No doubt. Not only is the Fed and Treasury getting into the distressed debt game, but now the FDIC is as well. Hell, why not bring in the FCC, the FBI, the ONS, the Office of the Surgeon General, and the AFT as well to start purchasing distressed debt as well?
@19 LOL, coffee all over keyboard
Are rumblings of a WF bid this morning just BS?
The Sandler’s were obviosuly listening to Kenny Rogers before pawning off Golden Shower Financial:
You got to know when to hold em, know when to fold em, Know when to walk away and know when to run.
You never count your money when you’re sittin’ at the table.
There’ll be time enough for countin’ when the dealins done.
WSJ:”For Citigroup, it is a rapid transformation from one of Wall Street’s biggest losers to a “pillar of strength,” as top executives began calling the company earlier this month, and a testament to the torment sweeping the banking sector.”
I think “Citi = pillar of strength” encapsulates how much everything that has gone wrong.
So, I know typically the acquired one gets a stock-price boost, but $500?! And a 1.08 T market cap?! wtf google?
http://finance.google.com/group/google.finance.13187/browse_thread/thread/a97cd7e81821b4e5