Wells Fargo buys Wachovia (insurance, transaction, buy, sell)

[jimmyP]

This is wild. Wells Fargo is going to buy Wachovia without any assistance from Fed !!!

The private sector is alive and well. Vote No !!!

[Kootr]

It looks like Citi is out and Wells Fargo will be acquiring the [entire] assets of Wachovia with no Fed involvement at the equivalent of about $7 per share to WB shareholders. I was wondering if the Citi deal would be passed by WB shareholders, but I feel very certain that the Wells Fargo deal will pass [WB] shareholder approval. I much prefer that Wachovia be acquired by Wells Fargo [even if both deals had been exactly the same].

WB still has a lot of short interest from before the no shorting policy went into effect. Watch for the shorts to cover their position.

[jimmyP]

Wachovia has had a lot of strange option trading this week. Seems like somebody knew something. Better deal all the way around

[brikag]

They did get a better deal! $15. billion is better than $2. billion.

Wachovia agrees to merger with Wells Fargo - * Home Page - Charlotte Observer (broken link)

[Kootr]

Originally Posted by brikag

They did get a better deal! $15. billion is better than $2. billion.

Wachovia agrees to merger with Wells Fargo - * Home Page - Charlotte Observer (broken link)

True, the deal is much better, but the WFC deal is for all of WB whereas the Citi deal did not include WB's insurance, securities and wealth management. By all means the WFC deal is better, but you must compare the two deals on their individual merits, which were not the same.

[jimmyrocks]

for anyone who had wachovia.. take a look at wf's ATM fees:

You can make withdrawals without a fee at any of our ATMs. If you use an ATM that is not Wells Fargo’s, a fee may apply.

Fees vary by type of account. Typical fees for transactions at non-Wells Fargo ATMs are:

• Non-Wells Fargo ATMs Transaction (U.S.) $2.50*
• Balance Inquiry fee: $1.50 each
• International Transaction fee: $5 each
• Other Fees: Owners and operators of non-Wells Fargo ATMs may charge a fee in addition tothose described above.

[paperhouse]

Originally Posted by brikag

They did get a better deal! $15. billion is better than $2. billion.

Wachovia agrees to merger with Wells Fargo - * Home Page - Charlotte Observer (broken link)

The FDIC isn't willing to back the new deal. They want Citi to own this so they can bail them out when it hits the fan.

[Marcian]

Wells Fargo agrees to buy Wachovia, but Citigroup objects - Breaking News From New Jersey - NJ.com

[ViewFromThePeak]

Originally Posted by paperhouse

The FDIC isn't willing to back the new deal. They want Citi to own this so they can bail them out when it hits the fan.

Yep, strategic purchase. Sort of like BoA with Countrywide as well as Merrill. Lots of dead weight they're going to take on, but that dead weight can be transferred to the taxpayers with big bailout #x (substitute x with 2 onward).

[ChunkyMonkey]

Originally Posted by jimmyP

This is wild. Wells Fargo is going to buy Wachovia without any assistance from Fed !!!

Isn't it obvious? Wells Fargo is going after Wachovia now because the new bailout bill seems most likely to pass. That explains why they dropped out earlier because the bailout billed failed. Now, they will just sell the junk to the U.S. taxpayers.