Scooping up troubled banks is the new thing to do for financial institutions that have managed to keep themselves above water, and things are getting competitive out there. Failing Wachovia was the apple of Citigroup's eye until Wells Fargo tried to swoop on its courting efforts. The game of tug-of-war is an important one, as banks compete to see who will survive the economic crisis and come out in a stronger position than when it started.
Early last week, Citigroup agreed to pay $2.2 billion for Wachovia's banking operations in a deal brokered by the FDIC and then Wells Fargo agreed to pay $14.8 billion on Friday. Citi's deal tumbled with Wells Fargo's trumping offer, so Citi took the issue to a New York court and over the weekend a judge temporarily blocked the Wells Fargo deal from going through. A hearing is scheduled for later this week.
Buti
Oasis
Beach Time
i'm not sure that i understand everything that's involved in this - so i need to find more online. was the offer from WF to buy more than just the banking functions? i would assume that it would be for the 'whole encilada' if they were going to pay that much more money for it. i wonder how this is going to affect the market today/this week.
1I have an account with Wachovia ... and it really is a pain in the butt bank to work with ... especially in NYC. I hope Citigroup wins out because they can do more with Wachovia in big cities than Wells Fargo. I don't even think I've ever seen a Wells Fargo branch in New York.
2I hope Wells Fargo wins this battle, I think it will be much better for the bank since WF wants to purchase the bank in its entirety. This will hopefully make for a much smoother transaction and will provide more certainty to those who work for Wachovia.
3While visiting my local Wachovia bank in LA over the weekend, I made my weekly deposit and chatted with the manager about the issues. She and her employees hope WF wins only if they agree to carry on the high level of customer service they pride themselves on having. (Hence the fact I could actually CHAT with a manager... only at Wachovia.) Whoever wins the battle, I will be sad if they start hurding people like cattle (ahem... BofA) rather than greeting everyone who enters and giving that small-town vibe I so adore. Personal service is rare nowadays, especially in LALA land, and when dealing with something as personal as finances I hope they take this seriously.
4Post New Comment
Please share your opinion with our community, but make sure it is on topic and follows our Community Rules. We moderate comments and prohibit personal attacks, threats, spam, lewd images, or the promotion of your personal website.