Citigroup buys Wachovia bank assets for $2.2B

[dbackjon]

Citigroup will acquire the banking operations of Wachovia for $2.2 billion in an all-stock deal, following much speculation over the weekend about the fate of the nation's fourth-largest bank.

Citigroup, the nation's largest bank based on assets, also announced it would raise $10 billion through a sale of common stock and that it would slash its quarterly dividend yet again, cutting it in half to 16 cents a share to preserve capital.

As part of the deal, Citigroup will acquire Wachovia's massive deposit network, as well as over $300 billion worth of Wachovia's loan portfolio and about $53 billion in the company's debt.

Citigroup said it will absorb up to $42 billion of losses on those loans, while the Federal Deposit Insurance Corporation will be on the hook for anything beyond that.

The FDIC noted that Wachovia did not qualify as a failed bank, unlike Washington Mutual, which collapsed last Thursday, only to be subsequently purchased by JPMorgan Chase (JPM, Fortune 500).


http://money.cnn.com/2008/09/29/news/co ... 2008092908

[AZGrizFan]

I love it. They have to point out that it doesn't "qualify" as a failed bank. WAFJ.

[AZGrizFan]

Now Wells Fargo is jumping into this fray...saying THEY'RE buying Wachovia for a $15.1 billion all stock deal....they're like sharks circling the chum....

http://www.kpho.com/money/17614495/deta ... 0210032008

[dbackjon]

Now Wells Fargo is jumping into this fray...saying THEY'RE buying Wachovia for a $15.1 billion all stock deal....they're like sharks circling the chum....

http://www.kpho.com/money/17614495/deta ... 0210032008

Much better deal for the taxpayers, and Wachovia shareholders, and Charlotte.

[AZGrizFan]

Now Wells Fargo is jumping into this fray...saying THEY'RE buying Wachovia for a $15.1 billion all stock deal....they're like sharks circling the chum....

http://www.kpho.com/money/17614495/deta ... 0210032008

Much better deal for the taxpayers, and Wachovia shareholders, and Charlotte.

Agreed...I'm hearing they're expecting no counteroffer from Citigroup. Wells is paying 5.5 x as much for Wachovia as Citigroup, and is requiring no Fed help.

[dbackjon]

Much better deal for the taxpayers, and Wachovia shareholders, and Charlotte.

Agreed...I'm hearing they're expecting no counteroffer from Citigroup. Wells is paying 5.5 x as much for Wachovia as Citigroup, and is requiring no Fed help.

and still a great deal for Wells. Gets them in areas they were lacking. Free market at its best

[AZGrizFan]

Agreed...I'm hearing they're expecting no counteroffer from Citigroup. Wells is paying 5.5 x as much for Wachovia as Citigroup, and is requiring no Fed help.

and still a great deal for Wells. Gets them in areas they were lacking. Free market at its best

I just hope they slough off about 5-10 Wachovia branches in key areas of the valley where they've got overlap, and that we can snag one or two!

[SuperHornet]

I heard this morning that Citi is trying to throw its weight around, "ordering" Wachovia not to sell to WF. Not sure they have the clout to enforce that, but it's certainly developing some controversy.

[BigApp]

it was only a few months ago Citi was begging Saudi princes for money to stay afloat after they couldn't find an American to do it. IMHO, they need to STFU and admit WFC has the better offer.