Citibank eats wachovia ! (insurance, wholesale, transaction, credit)

[Catbirds]

Originally Posted by GregTraub

Yeah, I just got the news from my favorite Loan officer over there an hour or so ago. Ever since WAMU I told him Wachovia will be sold, didn't beleive me until today. Luckily it wasn't a failure (I"d hardly say they bit the dust), and really it's just business as usual as far as he's concerned. There is little if any Overlap with Citigroup here in Orlando. So the buyout will mean mostly just a signage change for much of the Wachovia business here.

Are you saying that Charlotte will keep most of their jobs?

[ChunkyMonkey]

Originally Posted by Catbirds

Are you saying that Charlotte will keep most of their jobs?

I think he was referring to Orlando. Charlotte will probably see the most job losses. However, just a note that Citibank is not buying out all of Wachovia, just the retail bank, corp and investment bank and wealth management businesses. Wachovia will still exists as a company with its securities and asset management business.

[Humboldt1]

Charlotte is going to see a lot of job losses. This is a good marriage for Citi, but they will get rid of a lot of corporate positions in NC and consolidate them in NY. It will not be like the Texas Bank in which operations remained largely separate and are only now being merged.

Wachovia I understand has a good cash management platform which will go well with GTS at Citi.

Citi will only be responsible for the first $42B in losses on all those Alt A Golden West loans that will go bad in the next few years. I think it is a win for Citibank.

Assets and Securities business will be made part of Smith Barney. I see job losses there as well as in overall operations. I would not want to be employed at Wachovia right now, though it is perhaps a little worse at WaMu.

[MomOfToo]

What if you have a 529 Collegebound account through Wachovia-will that be effected?

[Humboldt1]

This is a question my bankers get all the time. I usually have them refer it off to one of our consumer bankers. If your 529 plan is in good funds it doesn't matter so much who is administering the plan. Kinda like have less than $100K at a bank that fails, you still get your money, it just might take longer.

Your 529 plan will be fine. Even if Citi had not bought Wachovia and they failed you would have been fine. Now, you just have easier access to the funds. Had Wachovia failed you might have had to wait a few weeks for your money. Either way, you are fine.

[TexianPatriot]

My guess is that Citi was banking on this bail out to pass. I'd get short this stock really quick if it was legal to do so (illuminati central planning market engineers fixed that). It's total BS. Changing the rules in the middle of the game destroys any confidence that might be left in the system.

[Humboldt1]

The Bailout will pass in some form or another, maybe watered down, but it will pass. I don't think the common taxpayer is going to win against Chase and Citi. The only reason Chase bought WaMu and Cit bought Wachovia is they are both betting that assets bought from troubled financial firms will be able to be dumped on the govt. Surely, Nat City and Sovereign are the next to be bought.

[TexianPatriot]

Run on the bank. Lets put an end to this party. I'm withdrawing all of my deposits today just to see if I can cause some anarchy.

[MomOfToo]

Thank you Humboldt1!

[FamilyTexas]

Any advice for those at Wachovia? We're sitting in San Antonio (old World Savings operations center) just waiting this out and it's not looking good. The housing market is awful, WaMu and Chase are also in the area, any other positions you'd recommend? Or any chances that they'll keep the old World op. Center here.

Do they offer severance to the employees they'll lay off?