Wachovia is reportedly in “advanced” talks with Wells Fargo. Citi has not yet been ruled out entirely, but WFC is said to be the “preferred bidder.”
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- Use the Bloomberg command
NH BLG_DEALBREAKER <GO>
to access Dealbreaker
Too long, didn’t read.
Fuck my life.
Do you ever sleep, Bess?
Fuck. Hope WFC doesn’t overpay. At least it’s in decent shape compared to everyone else.
CLT moves to SanFran
I hope Bess is going to get a big bonus this year… and maybe a promotion to VP?
This were we all went wrong boys… of course I was 14 at the time, but none the less:
ttp://www.charlierose.com/shows/1998/04/06/1/a-discussion-about-the-merger-between-citigroup-and-travelers-group
Bess is working analyst hours
it fucks me up, wall street giants GS and MS on line after WB
Bess,
Come to bed already, your laptop is awfully bright and I’m having trouble falling asleep.
I think WFC is a more logical bidder.
Neither WFC or C have any branch overlap (or minimal). However, the investment bank and brokerage at Wachovia and Citi would be largely duplicative, whereas WFC is not in any of those businesses, as far as I know.
Would certainly be better for all the employees in Wachovia’s IB and brokerage.
@4 No doubt.
WB is super junk. Anymore than $1 nonesense and they better not have to sell more than [100]m back to SUPERSIVIII.
It will be interesting to see what’s included in the deal. WFC is actually well-managed, so doubtful they will overpay or take on the crappy assets.
The new incarnation of the bill is even worse tha Paulson’s original treatise. The dems have essentially kept the crowning of the king, kept the saving of foreign banks but just decorated it all again, trying to re create f and f.
They are voting for the bill before 8 am?
What so americans have no choice and can’t complain?
If they vote for this bill we should vote them OUT. “You’re out” as Heidi Klune would say.
hmmm have a super day for first year analyst interviews at WB coming up… wondering whether or not it’s even worth going.
@14
Don’t bother.
Do you want to sell junk RMBS or CDOs to muppets? What are you going to learn? Not much left besides keeping track of small checking account balances and managing risk on credit cards.
By the way, the CC companies are now reserving the right to reduce lines. I believe this is without a default event. Haven’t heard of happening yet but in document.
What happens when the US consumer slows…?
@13 Even if the house votes monday before 8 am I don’t think that the Senate can vote till Wednesday (note: say this info earlier so it’s accuracy could have been null and voided).
CC companies have been reducing lines without default for years and for various reasons (too many cards with one issuer, long periods of inactivity on a card)
The Bailout Bill IS a Crap Sandwich. I have contacted my Senators and Representitives tonight and encouraged them to reject this bill. Please do the same. Thanks to all of you who have help to inform the public about this fraud.
China has just ordered its banks to stop lending to US banks. This is not good for US banks. Is China going to for the juggulars?
http://marketwarnings.blogspot.com/2008/09/china-usa-bankingl-chinese-banks-told.html
@19
The chinese are dumber than a sack of hair. The won’t lend to banks but they’ll buy treasuries and that treasury will lend to banks… whatever same difference.
@20
Moron. There’s a difference. If the US banks fail, the Treasury has to eat the loss. If the Chinese banks lend directly to the US banks, they’ll have to eat the loss themselves.
@21
They’ll eat it either way cause when the US bank fails the treasury we devalue the currency to bail them out and fuck the chinese who own treasury bonds. Good try though 21, go back to econ 101, try again next year.
22: Let me get this clear. So you are saying that if an investor know that AIG will fail tomorrow, he should nevertheless be indifferent to lending to AIG directly or buying Treasuries, since the end result of both situations will be the same?
Right….
@23:
Only if you’re a central bank and are orchestrating a pegged currency regime.
@22
are these the same chinese that put their treasury holdings up as collateral against bad chinese real estate loans in chinese banks with bad balance sheets before selling stakes to US wall street firms for a huge mark up?
using your econ 101, could you give me the back of a napkin value of being the world’s reserve currency?
the chinese have already sucked the blood out of the US consumer and now a strengthening yuan will allow them to buy cheap commodities in the world market to support the next wave of internal growth.
@25:
you think they’ve sucked the blood out of the US consumer? I think the the cheap shit they make and Wal_Mart sells is the only thing keeping the US consumer from going belly up.
24: You are assuming the treasury will bail out all the failed banks. WaMu wasn’t bailed. Leh wasn’t bailed. Also, the magnitude of the bank failures does not have a perfect relationship with the magnitude of the currency devaluation. So in most cases, you’ll end up better being a treasury holder than a direct creditor of the failed banks.
@ 10 WFC is only better for WB’s IB if you like certain death over some uncertainty. WFC will neutron bomb the IB. Don’t know about the stock brokers, but definitely every person in the IB had better start looking like a commercial banker again if they want to live.
WFC contracted out all negotiations to Dick Fuld – he is offering $47 for all of WB, plus anyone who cannot do 10 chin-ups gets no severance
WFC HQ is Minneapolis, not SF
WFC HW is 420 Montgomery St, SF NOT MPLS, as a WFC employee I can tell you, I’ve been there.
WFC does have a brokerage business – about 1600 of us – but certainly not the post-AGEdwards #s that Wachovia has now…
We have a few IB’s, not many…and a big insurance brokerage business…
WFC employees have wanted this deal for a long time – I hope it happens
I’ve been thinking WFC with a government assist on Wackovia for a while now. Everyone is uncomfortable with Shiti getting bigger.
I agree that the Wells business model means that a lot of Wackovia will be terminated if this deal happens.
so WB will remain only as a brokerage and IB – WFC would have wanted the whole shabangabang – easy to see why they backed out and let C assume $42B of risk…
Wachovia bank down 85% and deposits taken over by Citi. I feel bad for the employees who had stock in the company. The company’s ibank seemed a little inept thought.
@34
a little?
@31, why would WFC employees want the WB acquisition? wouldn’t it drag on the stock? or you thinking of new job opportunities assuming WB IB isn’t shut down?
AIG’s fall would cause the collapse of European banks, the collapse of EUR, and the coming of zero interest rates in europe with hyper inflation.
This tsunami is coming. The only thing ceovring for it yet is the US government bailout of AIG and therefore the banks in europe are still posting valid insurance.
What the cover is removed…”the shit will hit fan”
A MUST READ and UNDERSTAND article is below. To your profits,
http://financialtraders.blogspot.com/2008/10/aig-european-banks-crisis-us-government.html
AIG’s fall would cause the collapse of European banks, the collapse of EUR, and the coming of zero interest rates in europe with hyper inflation.
This tsunami is coming. The only thing ceovring for it yet is the US government bailout of AIG and therefore the banks in europe are still posting valid insurance.
What the cover is removed…”the shit will hit fan”
A MUST READ and UNDERSTAND article is below. To your profits,
http://financialtraders.blogspot.com/2008/10/aig-european-banks-crisis-us-government.html