Citing "dramatic differences in the parties' transaction structures and their views of the risks involved," which apparently made a split of WB "impossible." Vikram still wants that $60 billion in damages, though apparently C is "still willing to compete with an FDIC-backed bid," according to Reuters. Citi issued a press release just now, and noted:
"We are proud to have been part of an historic transaction that was supported by all of the federal banking agencies and the Secretary of the Treasury, after consultation with the President, and that we carefully designed to avoid systemic stress and to advance the interests of our shareholders.We stood by while others walked away. Now, our shareholders have been unjustly and illegally deprived of the opportunity the transaction created."
Normally, we'd make fun of Vickles for this, and obviously some people are going to be all "well the Wells deal was better for Wachovia," but what the fuck, how about a little gratitude from the WB, which sort of had its ass saved by Citi a few weeks ago, without whom it probably would've gone under?
"We did not seek the Wachovia transaction; Wachovia brought it to us. Our focus remains on capitalizing on our global strengths. We will continue to apply the same discipline we employed in this and other recent transactions to future acquisition opportunities. We will redouble the focus on our five core businesses and continue to demonstrate strong capital and risk management supported by continuously improving expense control. We are committed to affirming Citi's position as a leading global financial institution."There has been strong affirmation of Citi's global universal banking model. Citi has a large and diversified deposit base, a strong capital ratio, solid liquidity and tremendous assets. This strength, as well as the company's commitment to managing risk, has made Citi a favored counterparty during this period."
Posted by guest , Oct 09, 2008 5:20PM
DJN: *DJ Citi Agrees To Pay $12B To FDIC, Incur $42B In Losses >C
~
Posted by beentheredonethat , Oct 09, 2008 5:21PM
WFC gets caught with the bag? That was a definitive merger agreement at $7? Enough to pull WFC down?
Posted by guest , Oct 09, 2008 5:22PM
There should be a ban on this here information super highway. Information is too accessible, money moves too quickly, falls and rises are too wild...
In any event, Pandy is an asshole and is getting plugged a new one.
Full stop.
Posted by guest , Oct 09, 2008 5:25PM
All's well that ends Wells
Posted by guest , Oct 09, 2008 5:25PM
Why haven't gas prices fallen back down considering oil only cost 85 bucks a barrel
Posted by guest , Oct 09, 2008 5:28PM
Two guys fighting over a deckchair as the boat sinks. Nice touch.
Posted by guest , Oct 09, 2008 5:28PM
W is controlling gas prices to help out his oil buddies. I thought everyone knew that.
On another note, short financials, long porn.
Posted by RAW DOG , Oct 09, 2008 5:29PM
@5 - Today's gas prices are a function last month's (or perhaps older) oil price.
Posted by guest , Oct 09, 2008 5:30PM
Finally, Citigroup agreed to pay $12 billion to the FDIC,
and to incur up to $42 billion of losses, in exchange for the
contingent loss protection the FDIC agreed to provide.
Citi said: "Without our willingness to engage in this transaction,
hundreds of billions of dollars of value would have been seriously
threatened. We stood by while others walked away. Now, our
shareholders have been unjustly and illegally deprived of the
opportunity the transaction created."
Posted by guest , Oct 09, 2008 5:31PM
@5 It's called price elasticity.
-phobos.
Posted by guest , Oct 09, 2008 5:32PM
The International Monetary Fund (IMF) has activated an emergency finance mechanism to help countries hit by the financial crisis.
IMF chief Dominique Strauss-Khan said the lending procedure would allow the IMF to react quickly to support countries facing funding problems.
The scheme, which was used during the Asian financial crisis in 1997, will help speed up approval of loans....
Posted by guest , Oct 09, 2008 5:33PM
Ok, so what happens if you think your mortgage is higher than your home value but you can't tell becasue no one is selling anything to get comps? And, what if you have way way more than 25% down and it is your profit from previous houses that you didn't take cause you followed the rules?
Posted by guest , Oct 09, 2008 5:35PM
Things must not be that bad for the banks if they are going to continue to play this game of who has the bigger dick. The longer the uncertainty and lack of confidence Joe Six Pack has in the market the greater the multiplier effect to the downside for the economy. Fighting over a parachute when a meteor is about to hit is in nobody's best interest. Paulson was very clear when he said we need to get this done right and quickly. Right is dependent on quickly.
700 billion dollars to herd cats, worst investment in history.
SPODE
Posted by guest , Oct 09, 2008 5:38PM
it's about time citi manned up and stopped the bitching...
Posted by guest , Oct 09, 2008 5:42PM
Vik did make a good point earlier in the week ( i think)... next time the phone rings late on a Sunday night and its the Fed/Treasury/FDIC calling, hoping, begging for help, maybe C and others in a position to help wont be so quick to do so.
Posted by guest , Oct 09, 2008 5:42PM
Looks like Vicky realized he might have a chance to buy WFC in the future..
Posted by guest , Oct 09, 2008 5:43PM
On the upside lil'Vik gained much kudos here in Citi for turning into the incredible Hulk during the town hall. Rumour is we'll buy Iceland instead.
Posted by guest , Oct 09, 2008 5:44PM
Slik Vik is going to pick them both up now. 50 cent a share bitches.
Posted by AJ , Oct 09, 2008 5:45PM
I can't believe Citi tries to claim in its press release that: "The transaction also preserved substantial value for Wachovia's shareholders and other holding company stakeholders"
I've read a lot of lies in press releases, but the claim that Citi's deal was a good deal for WB shareholders is just amazing.
Posted by guest , Oct 09, 2008 5:50PM
@ 19 - worse deal than WaMu's shareholders?
Posted by guest , Oct 09, 2008 5:50PM
@5
bottleneck at the refinery level that was made worse after hurricane "whatever" that just hit. Refineries were still recovering from the previous hurricane before "whatever" it.
#10 is correct but too general, half credit. Sorry phobos, I know you're an overachiever. But here's a video to help you get ready for the weekend.
http://www.youtube.com/watch?v=xy4FXhkm6Nw
#8 your statement is true but doesn't fully address the question, half credit.
Here's your video.
http://www.youtube.com/watch?v=ZZZADbubu0Y
Baby Jesus
Posted by guest , Oct 09, 2008 5:54PM
@19, you fucking dumbshit, it was good for the sharholders because the alternative was $0 per share!
Posted by AJ , Oct 09, 2008 5:57PM
@22 The alternative before WFC came along was $0 per share but Citi taking the bank and leaving behind the liabilities and AG Edwards is clearly not a better deal for shareholders than what Wells offered
Posted by guest , Oct 09, 2008 5:59PM
@AJ- WELLS wasn't offering anything, remember? they walked away and didn't come back until after C had agreed to buy part of wachovia.
Posted by guest , Oct 09, 2008 6:01PM
Citi came to the rescue at a time when WB needed it most, that should count for something. I hope WB takes WFC down with it, fuck that, that is terrible business. It shows just how fucked up business practices are.
I hope Citi gets every penny of the $60b.
Posted by guest , Oct 09, 2008 6:01PM
russia up 11% today...off to the Haight to buy some weed, be back in a few
Posted by guest , Oct 09, 2008 6:02PM
AJ, you want a video?
Baby Jesus
Posted by guest , Oct 09, 2008 6:03PM
@2. Enough to bring down WFC. On second look, Citi walks.
Smart.
Now let's see if Wells completes the deal. They won't. They got cold feet the first time around. Now that they got a good look at the excrement in Wach's books, they will walk away. Again.
And then Wach will file for Ch. 11. Citi and WF and others will pick up the pieces.
Posted by guest , Oct 09, 2008 6:06PM
MS under 10 tomorrow.
I know people.
Baby Jesus
Posted by guest , Oct 09, 2008 6:10PM
Ding dong Wells, Vik left a flaming bag o' pooh on your doorstep. Mmmm, smells like teen spirit.
Posted by guest , Oct 09, 2008 6:10PM
I heard WFC sucks a LOT of penis
Posted by guest , Oct 09, 2008 6:15PM
you citi scumbags.
I know why you want those deposits. Its not because you healthy and growing. You are not taking advantage of weak banks.
You need those deposits. You need them because you are screwed. So you want to steal American citizens' deposits to toss at your faltering balance sheet. Which wouldn't help. So it would all be lost. And the FDIC, we the Tax payer will have to pay for those lost deposits. F off and die in a corner citi.
Vicky should be dragged out into times square naked, tarred and feathered until there is no skin left on his body.
He wants to sue so that we the tax payers will buy him a bank. I hope he gets shot.
Posted by guest , Oct 09, 2008 6:19PM
Vik told his lawyers after the WFC/WB deal was first announced that Wells stole his lottery ticket…
Posted by diablo , Oct 09, 2008 6:20PM
Vik can't pay for WB to match what WFC is offering. This thing was a charade. Vik stills wants money because he feels insulted. I've said before that Paulson will end up paying $250 million to C for them to go away by tomorrow. OK, that's just a few hours away. What do you say Hank?
(Of course, Hank might be too busy tomorrow trying to save the world, so C may have to wait to get their parting gifts. I can't say much about what WFC is going to do, but I'm betting Hank approves WFC's deal with WB. And remember, Hank has $700 billion, part of which can be used to help WFC after they get WB. Vik needs Hank's help too to keep C afloat, so he will be very careful.)
Posted by guest , Oct 09, 2008 6:20PM
#12: Key phrase "followed the rules." Lived within your means? Kept up your payments? Fuck you, sir, and yes you may have another. Bend over and this time you get no lube, you whiny bitch.
Seriously, here. I am not the world's most responsible person, I'll grant you that. But next to these fuckers who took home billions, I look like Joseph's pharaoh. Screw 'em all. They bankrupt the fucking economy and I lose my job, I'll sit at home on welfare for a while. There's obviously no point to trying to do it the right way.
Posted by guest , Oct 09, 2008 6:24PM
Taking bets on WFC and C stock price in one year.
C 50
Posted by guest , Oct 09, 2008 6:27PM
You want to play in a man's game? Well, there's one thing that counts in this life. You got to get them to sign on the line which is dotted. If you can't you can't close, you're shit. Hit the bricks, pal.
Posted by guest , Oct 09, 2008 6:32PM
They'll both walk, Wachovia is done for, and C and WFC will fight over the scraps for pennies of what's on the table now.
And 32, learn the language. And as for stealing the deposits, you might want to actually learn how this kind of thing works. Go back to your back office job at Wachovia and wait for the axe to fall. Severance= $0 months
Posted by guest , Oct 09, 2008 6:36PM
37: They did sign on the line. Then they said, "Psych!" and went shopping for a better offer after their asses were temporarily non-grassified.
If I was C, I wouldn't want WB anyway, frankly, but what we need here is a little Auntie Entity. "It doesn't matter what the deal was. You broke it. In my town, you bust a deal, you face the wheel."
Posted by guest , Oct 09, 2008 6:36PM
#32 has big tears in his eyes.
Posted by guest , Oct 09, 2008 6:39PM
Reminds me of Pennzoil Vs. Texaco, Pennzoil's case was built on an oral agreement and notes on a napkin.
C will get a huge settlement out of this.
In 1984, Pennzoil and Getty Oil agreed to a merger. But before it was finalized, Texaco offered Getty a substantially better price, and Getty Oil reneged on the Pennzoil deal and sold to Texaco. Pennzoil immediately sued Texaco, alleging Texaco had illegally interfered in the negotiations. Pennzoil won the case in 1985 and was awarded $11.1 billion, the largest judgment ever in the U.S. at the time. A Texas appeals court reduced the judgment by $2 billion, but interest and penalties drove it back up to $10.3 billion. Texaco said they would appeal the case to the Supreme Court, and would file for bankruptcy if forced to pay.
Posted by guest , Oct 09, 2008 6:40PM
free cash for Citi. Yay!
Posted by guest , Oct 09, 2008 6:52PM
Citi is the real winner here....leaving Wells holding a shit bag that is Wachovia! Good for Pandit! Good for Citi!
Posted by diablo , Oct 09, 2008 6:52PM
@41
Want to see Carl Icahn's version of that lawsuit and how it got settled. Here:
http://www.youtube.com/watch?v=UEc8Xzn1WqU
You have to watch this.
Posted by guest , Oct 09, 2008 6:54PM
Citi is the real winner here....leaving Wells holding a shit bag that is Wachovia! Good for Pandit! Good for Citi!
Posted by guest , Oct 09, 2008 7:58PM
1 day of atonement?
Posted by guest , Oct 09, 2008 8:00PM
What if Wells thinks that Citi won't last long enough to carry through with a lawsuit?
Posted by guest , Oct 09, 2008 8:02PM
These celebrities don't have a brain between ten of them and they are trying to tell us how to vote?
Just to spite them I'll vote against the guy these idiots want.
Posted by guest , Oct 09, 2008 8:15PM
My crystal ball says that Hank will contribute at least 50% of those $20bln that WFC needs to buy WB.
Posted by guest , Oct 09, 2008 8:21PM
http://www.upzero.com
Incredible market commentary --- hysterical.
Posted by guest , Oct 09, 2008 8:28PM
But what about Citi, what happens to Citi?
Posted by guest , Oct 09, 2008 9:20PM
WTF? Vicky could have opened his manpurse to write a check and get the deal done. Oh, wait! He has no liquidity!!!
Ergo - mushroom welt on the forehead!
Posted by guest , Oct 09, 2008 9:22PM
WTF? Vicky could have opened his manpurse to write a check and get the deal done. Seriously - 7.05? 7.35? Oh, wait! He has no liquidity!!!
Ergo - mushroom welt on the forehead! Slink away pantsed boy.
Posted by guest , Oct 09, 2008 9:22PM
WTF? Vicky could have opened his manpurse to write a check and get the deal done. Seriously - 7.05? 7.35? Oh, wait! He has no liquidity!!!
Ergo - mushroom welt on the forehead! Slink away pantsed boy.
Posted by diablo , Oct 09, 2008 9:26PM
@38
Wrong.
https://www.wellsfargo.com/press/2008/20081009_merger_proceed
Wells Fargo’s Merger with Wachovia to Proceed as Whole Company Transaction with All of Wachovia’s Banking Operations
Merger on schedule for completion by end of 4th quarter 2008
San Francisco — October 9, 2008
Wells Fargo & Company (NYSE: WFC) said today that it and Citigroup, Inc. (NYSE: C) have terminated discussions concerning a possible sale of certain banking assets of Wachovia Corporation (NYSE:WB) and reaffirmed that it is proceeding with its merger with Wachovia Corporation as a whole company transaction with all of Wachovia’s banking and other operations, requiring no financial assistance from the Federal Deposit Insurance Corporation (FDIC) or any other government agency.
Wells Fargo has submitted its application to the Federal Reserve Board seeking expedited approval of the merger and the share exchange agreement previously entered into between Wachovia and Wells Fargo. Under the share exchange agreement, Wachovia is issuing Wells Fargo preferred stock that votes as a single class with Wachovia’s common stock representing 39.9 percent of Wachovia’s voting power. The acquisition of the non-banking related operations of Wachovia and the share exchange agreement have received early termination from the Federal Trade Commission (FTC), under the Hart-Scott-Rodino Act.
Posted by guest , Oct 09, 2008 9:26PM
This is crazy. No bank is ever going to agree to buy another bank at the 11th hour. Fuck WFC. I work for Wachovia and this pisses me off, though I most probably will be keeping my investment bank job now. Citi saved us from failing.
Posted by diablo , Oct 09, 2008 9:32PM
@56
Look at the message above yours, posted at the same time as yours.
Good luck to you!
Posted by guest , Oct 09, 2008 9:39PM
I hope citigroup loses and then sues its lawyers for drafting a litigable agreement.
NY is finished
Go west and south for jobs
http://endofesq.com/?p=311
Posted by guest , Oct 09, 2008 9:39PM
I hope citigroup loses and then sues its lawyers for drafting a litigable agreement.
NY is finished
Go west and south for jobs
http://endofesq.com/?p=311
Posted by guest , Oct 09, 2008 9:40PM
I hope citigroup loses and then sues its lawyers for drafting a litigable agreement.
NY is finished
Go west and south for jobs
http://endofesq.com/?p=311
Posted by guest , Oct 09, 2008 10:15PM
50 - pls stop pumping that bs site, aight. your 0.15 a post won't amount to much if this shit continues, son.
Posted by guest , Oct 09, 2008 10:17PM
OMG, Just saw an anti cramer commercial on Fox, it was hysterical.
Posted by guest , Oct 09, 2008 11:08PM
any bets on which banks will be fighting for the soon to be on life support..."Wellscovia"? my guess...JPMorgan and Goldman Sacks. Citi wont be taken again by the FDIC to bailout Wells when it sinks
Posted by guest , Oct 09, 2008 11:32PM
They just announced the MS and GS downgrades on Bloomberg as breaking news. (from Moody's)
Posted by guest , Oct 10, 2008 12:38AM
Is it possible that Citi's lawyers deliberately left out wording that would have made Citi's deal unquestionably binding in case Citi itself wanted to back out of the deal? From what I have heard Vikram was pulled out of bed to get that deal done Sunday night so it seems entirely possible that they did that to were in fact being smart.
Posted by guest , Oct 10, 2008 8:20AM
diablo,
thank you for posting the press release. those things are always completely accurate and it really is amazing how the PR people are able to see the future.
WFC will walk, no doubt about it.
Posted by guest , Oct 10, 2008 9:30AM
Charlotte's BACK BABY
Posted by guest , Oct 10, 2008 9:52AM
OMG......a true merger of equals! barefoot hippies and barefoot inbreeds getting married! wonder what defects the children will have
Posted by guest , Oct 10, 2008 9:55AM
OMG......a true merger of equals! barefoot hippies and barefoot inbreds getting married! wonder what defects the children will have
Posted by guest , Oct 10, 2008 9:55AM
OMG......a true merger of equals! barefoot hippies and barefoot inbreds getting married! wonder what defects the children will have
Posted by guest , Oct 10, 2008 10:53AM
you're a loser, vik!