A group of Wachovia shareholders have set up a site called "Wachovia Vote No" to oppose the Citi deal, because they think they're getting the shit end of the transaction. We are all for this, as it's reminiscent of that fantastic JPM/BSC call that resulted in "I'm a shareholder and I am NOT voting for this merger!"
The most interesting thing to come out of the grassroots movement so far could potentially get Count Vikula et al in trubs with the New York AG. Because the site serves as a sounding board for people interested in trash talking the deal, it's received many crazy comments from "shareholders and others connected to WB" since launching last night. The following is a transcript of a possibly BS tip that was called in "from a prominent investor," who asked for anonymity.
I was playing golf at the Quail Hollow Country Club (Charlotte, NC) during the midday on September 18 with a business friend. During the match, my friend received a text message on his iPhone.He said, "Hey, look at this". When I looked at his iPhone, I saw a message from a high-up Citibank executive that said "if you have any money in Wachovia, get it out now, they are technically insolvent."
From this message, it is possible that Citibank executives were trying to create a run on Wachovia, and their scheme to do so apparently worked. They stood to benefit greatly by this unconscionable act -- ten days later they were given Wachovia for next to nothing.
Posted by guest , Oct 02, 2008 4:30PM
I call bullshit. Everyone in Char knows it's 'Quail Hollow Club'.
Posted by guest , Oct 02, 2008 4:33PM
Guys in my high school used to send text messages about insolvent financial institutions just before buying them for basement prices. It was no big deal.
Posted by guest , Oct 02, 2008 4:34PM
Right
Posted by guest , Oct 02, 2008 4:36PM
I think "the guy from DE" set up that website.
Posted by guest , Oct 02, 2008 4:36PM
We already know that the FDIC was shopping Wamu and WB. You know that kind of information is going to leak out. It also puts bidders like JPM and C in a very strong position.
Owning bank stocks (or debt) is just a stupid thing to do right now. The FDIC has a lot of power to seize banks and they don't mind screwing noteholders to make their fund look good.
The really frightening thing is that the FDIC has been waiving deposit insurance assessments for the last few years. If they had maintained the assessments, there would be a lot more cash in the kitty and a lot less risk to the taxpayer. Thanks Sheila. Thanks a whole lot.
Posted by guest , Oct 02, 2008 4:37PM
Well, Bess, haven't read this anywhere else. You are phenomenal.
Posted by guest , Oct 02, 2008 4:38PM
OR Wach was indeed insolvent and the govt forced Citi to take it over to avoid a bankrun.
Posted by guest , Oct 02, 2008 4:38PM
@5...prove your last paragraph with empirical evidence from the gubiment and not some shithole conspiracy blog - otherwise get the fuck off of DB.
Posted by guest , Oct 02, 2008 4:38PM
Do people that play golf really have iPhones?
Posted by guest , Oct 02, 2008 4:40PM
I can't believe someone would put that in an email since emails are forever.
- guy who is creating a permanent record by posting this
Posted by guest , Oct 02, 2008 4:42PM
Everyone is praising the FDIC head honcho. Wow, she really has a lot of power, doesn't she?
Posted by guest , Oct 02, 2008 4:42PM
Everyone is praising the FDIC head honcho. Wow, she really has a lot of power, doesn't she?
Posted by guest , Oct 02, 2008 4:44PM
#10. this may be why they are saying it was on an i phone. With an iphone you can retrieve anything.
Posted by guest , Oct 02, 2008 4:44PM
It all makes sense: http://www.wachoviavoteno.com/getOne.asp?ID=463&sp=71
Citi, citic, all leading to Wachovia going down.
Posted by guest , Oct 02, 2008 4:46PM
yeah im sure a high ranking citi exec would send that in a TEXT MESSAGE that could easily be obtained by a court order you gullible fuck
Posted by guest , Oct 02, 2008 4:48PM
@15 its ok, he had legal look at it first
Posted by guest , Oct 02, 2008 4:48PM
I'm sure that something like that would go around like wild fire. Everyone has gotten those kinds of texts in the last couple of weeks from their friends who aren't in any financial industry. People are trying to protect one another and be pro active.
Posted by guest , Oct 02, 2008 4:51PM
@15- i wouldn't put it past anyone at citi.
Posted by guest , Oct 02, 2008 4:51PM
You can shred and burn paper but text messages and e mails can be retrieved from the clouds.
Posted by guest , Oct 02, 2008 4:52PM
@7 Not #5 here, but check the third paragraph
http://www.nytimes.com/2008/10/02/business/02deposit.html?ref=business
Posted by guest , Oct 02, 2008 4:53PM
At the end of all this there are going to be quite a few people in jail. @10 you are spot on. E-mails are forever and they are sifting through them right now. You see...again... there is a thing called the Patriot Act and if you think that the Fed cannot use it to circumvent this (perceived) threat against National Security...pack your box and go home.
The banks wont go down, the idiots that run them will.
Posted by Debter , Oct 02, 2008 4:55PM
Who the f**k writes like that. It's name dropping without actually dropping any names.
Posted by guest , Oct 02, 2008 4:58PM
#10, sometimes you deliberately create a permanent record to protect your own ass.
Posted by guest , Oct 02, 2008 4:59PM
People forget that ICE is ubiquitous.
Posted by guest , Oct 02, 2008 5:03PM
You'd have to be a fucking idiot to be an upper exec and send that text message. Not to mention the dude talking about it would be even more of a moron to say exactly when and where he read the message. I think it's totally fiction.
Posted by guest , Oct 02, 2008 5:05PM
I can't decide if mouth breaker or window licker is more appropriate here.
Posted by MarshallStack , Oct 02, 2008 5:06PM
A threat against National City? What?
Sheila C. Bair, the F.D.I.C. chairwoman, in an interview Wednesday. “It is what is...
Anyone caught using that inane tautology should be flogged. Publicly. In Mscy's window.
If the merger is stopped, nobody has to cover. Yea America!
Posted by guest , Oct 02, 2008 5:06PM
I dont know. If it's on the internet, it's gotta be true.
Posted by guest , Oct 02, 2008 5:08PM
Fed is peddling hard (61 billion for AIG already, and close to $500 billion for the rest).
Market is heading UP TOMORROW Friday. It has been foretold!
http://financialtraders.blogspot.com/2008/10/aig-stock-bankruptcy-bailout-crisis-fed.html
Posted by guest , Oct 02, 2008 5:09PM
I call BS
Posted by guest , Oct 02, 2008 5:09PM
@28...agreed. But she didn't deny that they have not been assessing premiums. Meanwhile the fmr. (several chmn before) chmn. Isaacs hits the nail on the head in the article - the deposit limit is not creating or connected to the problems being faced today. Deposit runs are happening after all the other bad shit hits the fan.
Posted by guest , Oct 02, 2008 5:12PM
It's not implausible. Even sophisticated people are monumentally stupid about this kind of stuff, particularly in times of real instability. I used to defend people in insider trading investigations, and the stuff they or the targets of the investigation did and said were unbelievable. Look, Martha Stewart is a smart lady. And yet....
Posted by guest , Oct 02, 2008 5:12PM
@29...get hit by a bus on your way back to yahoo boards. Asshat.
Posted by guest , Oct 02, 2008 5:15PM
@32...Martha Stewart didn't get convicted for insider trading. She got convicted for obstruction/lying to a federal agent.
Go jiggle your testicles in the men's room and don't bother anybody.
Posted by guest , Oct 02, 2008 5:15PM
@ 2, thanks for making me look like an idiot.
Just read your comment and burst out laughing in my office - now two of the admin appear to be staring at me...
Posted by guest , Oct 02, 2008 5:15PM
@23 - #10 here. I agree and have sent emails under the doctrine of CYA. Just have trouble picturing the situation where what is claimed to have happened would be smart let alone legal.
Posted by guest , Oct 02, 2008 5:17PM
And Martha was formerly a licensed stock broker. It wasn't "a good thing".
Posted by guest , Oct 02, 2008 5:19PM
A text message... really? I bet the guy's Iphone was bedazzled.
Posted by guest , Oct 02, 2008 5:20PM
Martha Stewart is on the cover of the current EQUITIES issue
Posted by guest , Oct 02, 2008 5:24PM
Is this the same guy that has the hello kitty limited edition laptop that is selling like hotcakes in Japan, # 38?
Posted by guest , Oct 02, 2008 5:25PM
Too long, didn't read.
Posted by guest , Oct 02, 2008 5:25PM
Cramer devoted almost an entire show to telling his brethren to buy Martha's stock.
Posted by guest , Oct 02, 2008 5:28PM
@8 Hello Chuck Schumer.
Posted by guest , Oct 02, 2008 5:30PM
I'm going to have to call bullsh*t as well. Not that tough to get the names of everyone in the groups that teed off that day. Prominent investor = stock broker. Playing golf = bowling.
Posted by guest , Oct 02, 2008 5:33PM
Will call BS as well.
Wouldn't be surprised is the "tipster" is some poor soul, longing for attention and membership in Quail Hollow...
And... was there really a run on Wachovia like Bear/Lehman or GS/MS?
http://www.charlotteobserver.com/business/story/226799.html
Posted by guest , Oct 02, 2008 5:39PM
Well, the fact that it was posted here means if they didn't know about it before they know about it now. It will be investigated.
Posted by guest , Oct 02, 2008 5:45PM
I will call BS as well.
Let's break it down:
A claim by an anonymous person who claims to have read a txt message from a "Citi Executive" to another anonymous person whom the first anonymous person says was golfing with at the Quail Hollow.....
Posted by guest , Oct 02, 2008 5:52PM
if it was a true rumor, why is this illegal?
Posted by guest , Oct 02, 2008 6:02PM
You are so wrong 47, my best friend's sister's boyfriend's brother's girlfriend was in the foursome behind them and she swears that they are totally telling the truth.
Posted by guest , Oct 02, 2008 6:20PM
@49...she was in a foursome? What was the ratio - 3 girls, 1 guy...2 and 2, 1 girl 3 guys (which violates the too many dick rule)...
i hope they used protection.
Posted by guest , Oct 02, 2008 6:47PM
50, I thought the too many dicks rule only came into effect if there were not enough orfices in which to insert said dick. Which would be 4, right?
Posted by guest , Oct 02, 2008 6:55PM
If you're a dude - any other dick than your own violates the rule.
If you're a girl - whore.
Posted by guest , Oct 02, 2008 7:12PM
52, voting for McCain, Palin, are we? Roasting is obviously something you have never properly enjoyed.
Posted by guest , Oct 02, 2008 7:47PM
What is roasting?