Woe Is Wachovia
Filed under: Business Blitz
As we mentioned last week, Citigroup was said to be buying Wachovia with the help of the U.S. government.
Citigroup had agreed to buy Wachovia's assets for $2.1 billion in a deal which was brokered by the Federal Deposit Insurance Corp. But, then on Friday, Wells Fargo upped the offer by saying they'd buy Wachovia for $15.1 billion and the deal would not require any government support.
This lead Citigroup and Wells Fargo into both state and federal court this weekend in a battle over Wachovia.
Citigroup sued Wachovia, Wells Fargo, and the directors of both companies for interfering with their planned takeover of Wachovia. They're seeking more than $60 billion in damages.
The complaint says it's seeking more than $20 billion in compensatory damages and more than $40 billion in punitive damages from Wells Fargo for tortious interference.
Well now new reports are stating that Citigroup, Wachovia, and Wells Fargo have all agreed to a standstill of all formal litigation while a decision is trying to be reached regarding the fate of Wachovia.
The standstill agreement will end at noon this Wednesday, unless it gets extended.
Citigroup spokesman Michael Hanrettasaid in a statement, "We are pleased to participate with the Federal Reserve Board in a fair-minded, good faith process to achieve a prompt and successful outcome."
Frederick Cannon, an analyst at Keefe, Bruyette & Woods, said, "If this goes into a protracted legal battle, everybody loses. Wachovia is big enough that it would be a negative for the financial system. Given that situation, we will see a resolution pretty quickly."
Crazy times these are!
more shit.
Citigroup was not buying all of Wachovia, just some select assets. Wells Fargo is trying to but the complete institution.
FIRST????
Re: TwilightLover – Re: TwilightLover – dang it!
This worldwide economic meltdown
was pre-planed in advance.
The stupid bailout is not helping,
look at the world markets.
Citigroup was not going to buy all of Wachovia, just some select assets. Wells Fargo wants to buy the entire institution.
they better not fuck wih my WAY TO SAVE!!!
=/
Geez. They just put the sign up on the new Wachovia by my house on Friday. Hasn't even opened its doors yet. Oh well, there's a Wells Fargo directly across the street. What a waste.
Sad but not shocking now. Next….
And how many millions did the rat bastards that run it steal on their way out the door?
Re: torrrieB –
oops…with is what i meant
WE ARE ALL FUCKED!
fresh.
As someone from Charlotte, NC (Where Wachovia is headquartered) all of this hits hard and is a major blow.
.
I only need half a billion dollars to pay off all my debt. Who is going to help me?
Re: RashManly – agreed all part of the master plan keep the wee people down greater divides between the rich and poor fuck the middleclass
.don't keep all your records digitally people!
. oops we lost all of your information!
.Bush was a puppet in the big picture
.
MCCAIN MORE OF THE SAME!
So? Isn't this a celebrity news site?
One word to describe this situation and the entire economic situation:
GREED.
People are so fucking greedy.
BOO!
Not really that bad if Wells buys them. Citi is another story. They won't fail Wells will win for sure.,
Folks if you look this stuff up you will see that Hussein Obama has his fingerprints all over this debacle. Hussein Obama and his radical association with Acorn group caused this debacle by forcing mortgage companies to give mortgages to people who could not afford them. Yes this means minorities and others but basically it means Hussein Obama and ACORN forced mortgages companies to give mortgages to people who could not pay them back and also they took a percentage off the top for themselves and their radical efforts. Please vote for McCain and vote Yes on Prop 8 in California
Re: sweetpiece – Obama = Big Trauma. Sweet if you actually read anything you will see that Hussein Obama has his fingerprints all over this debacle. He and his radical group ACORN caused all of this by forcing mortgage companies to give loans and mortgages to people who could not pay them back. Please read.
I work for Wachovia and it's ridiculous how all this is going on. All the CEO's are making the money while we the employees are been tossed around.
Re: RashManly – Because of Greed, not pre-planned, it is because of Banks and citizen's, the blam cannot just be one way
!
Re: njpaul0129 – BAHHHHHHHHHH!
Coming from someone who is in this situation first had I must say that Citi is fucking up our economy! Wells was going to buy that insitution and keep it in tact. Citi was going to buy it and fuck it up and people will lose jobs. Not only that our lovely Federal Government wouldn't have been involved in this transaction if they would have just let things go. Now our greedy government is yet again involved in our banking system. I'm so tired of this! They need to let Wells (a very stand up financial institution) buy it and put it to good use. Instead Citi is having a tantrum because they didn't offer enough! I hope they enjoy watching their greed fuck up our already in trouble financial situation!~
WACKOVIA
Here we go again.
Where are these people getting so much money??? why does everyone in the states sue eachother for crazy amounts of money? I think this is happening because too many of you are stupid
Wachovia…..
Walk ALLLLLLLL overya!!!!!!!!
So so scary. This is a MAJOR MAJOR bank. I'm so worried about the US.
My home State (Florida) this bank was a major bank there for me and all my family. My father had all of his life savings in this bank prior to his death. What if it all went *poof.*
We haven't even begun to see the worst if you ask me.
Citigroup wants to buy part of it with government meddling. Wells Fargo wants no government involved and will buy it all. Which is the smart choice and why is it so difficult for government to see it??
We are so unbelievably screwed. Middle class will be living in the gas-guzzling SUVs they've not paid for yet…
What the fuck Perez?? If I wanted to know about the latest woes of our economy I would've gone to cnn.com or something. This is a fucking celeb site! (Or was anyway….)
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The richest 400 Americans — just four hundred people — own MORE than the bottom 150 million Americans combined. 400 rich Americans have got more stashed away than half the entire country! Their combined net worth is $1.6 trillion. During the eight years of the Bush Administration, their wealth has increased by nearly $700 billion. Now we have a $9.5 trillion debt. Why did these robber barons get any more of our money?
Buh-Bye free checking!
Frickin Citi Group - rip off beoches. That is pure greed. If they want it, they should match what Wells will pay and with no help from the gov't or the FDIC !!!
Their original deal screws the stock holders big time.