How long before Citibank acquires Wachovia? (banking, closing, Wells Fargo, credit)

[goodbyehollywood]

Originally Posted by Humanoid

Citi is is doing bad themselves, it makes little sense for them to acquire Wachovia without ....you know a shotgun to the head. I wonder when the market is going to start taking interest in Citi's off the balance sheet toxic soup

I've wondered about this for a while now. Citi has been playing the distraction game, letting everybody else take their turn in the limelight while they scramble behind the scenes to save themselves. I think Citi is doing much, much worse than they are letting on, which is why they haven't been acquiring. They have already taken a large foreign buy-in and tapped government credit, so I wonder if they can hang on.

The government already tried matchmaking a shotgun marriage between Citi and Lehman, and Citi wouldn't commit. I think Wells Fargo is in a much better position to snap up Wachovia's assets, unless foreign money takes them off the table. The amount and breadth of foreign intervention at the heart of our financial system is alarming, though sadly, no longer shocking.

[car54]

Originally Posted by goodbyehollywood

I've wondered about this for a while now. Citi has been playing the distraction game, letting everybody else take their turn in the limelight while they scramble behind the scenes to save themselves. I think Citi is doing much, much worse than they are letting on, which is why they haven't been acquiring. They have already taken a large foreign buy-in and tapped government credit, so I wonder if they can hang on.

The government already tried matchmaking a shotgun marriage between Citi and Lehman, and Citi wouldn't commit. I think Wells Fargo is in a much better position to snap up Wachovia's assets, unless foreign money takes them off the table. The amount and breadth of foreign intervention at the heart of our financial system is alarming, though sadly, no longer shocking.

I know this is off-topic, but do you have any thoughts on Travelers Group which is part of Citi?

I have a LOT of Travelers insurance policies....would a Citigroup failure bring down the insurance side?

[MomOfToo]

I thought Wachovia merged with Morgan Stanley or was going too-what happened with that?

[renter07]

Originally Posted by MomOfToo

I thought Wachovia merged with Morgan Stanley or was going too-what happened with that?

the talk fell apart. Morgan Stanley was able to sell about 20% of its asset to another financial company. Besides, it's not a good match. Two wrongs can't make a right.

[Humanoid]

Well it looks like we may not have to worry about Citigroup much longer. They are in talks with the government over the weekend. Who could buy them? Goldman Sachs?

[bale002]

Originally Posted by Humanoid

Well it looks like we may not have to worry about Citigroup much longer. They are in talks with the government over the weekend. Who could buy them? Goldman Sachs?

I was thinking of that in the shower, would probably be acceptable.

I think JP Morgan already has enough to digest with WaMu, BoA with Merrill, Wells with Wachovia.

So who else? Unless the government itself takes like a 25% equity stake, possibly convincing a consortium of other governments to chip in, unlikely though, for the moment. Another possibility is a consortium of international banks, but again, unlikely at the moment.

Nonetheless, I agree with those who say that within a year - who knows, maybe within two months - the US banking industry will be virtually nationalized. After that, cross-border mergers, probably among hybrid private/government sector banks from US, Canada, Mexico, the EU, possibly also China and Brazil.

It really is nothing new: banking is or has been a nationalized industry in many countries, including many European countries during the 1920s-1980s period, for better and for worse. What will be new is the global scale.

By the way, the same could be said for the automotive industry, and I believe also, maybe sooner than later, funding for pensions and health care.

[Lulu101]

Now we know why Citigroup was so desperate to get their hands on those Wachovia deposits. In retrospect this looks like another blunder by the government (I'm assuming that Wells Fargo would have survived without acquiring Wachovia).

[dennismpat]

I have a checking account with Wachovia (which I really don't use very much). I stopped by a financial center during my lunch hour recently and spoke with the manager on duty, who told me that due to the fact that Wachovia is such a large company, the transition to Wells Fargo will not be complete until sometime in 2010. With that, she gave me a couple of referral coupons to anyone wanting to open an account, which would entitle that person and the one making the referral $25.00 each. I'm not sure I'd refer anyone to open an account with a bank that will cease to exist in its present form in two or so years.

[chet everett]

WellsFargo is pretty decent firm, and I have to think they have learned from their past acquisitions -- History of Wells Fargo - Wikipedia, the free encyclopedia

If they have folks still in a position to recall that era, I have to think they'll move MUCH faster than to drag the unification out into 2010.

[AzianCalFullertonStudent]

Now, it's not whether or not Citibank acquires Wachovia, it's how our tax dollars are being spent???