Just in citigroup aquires wachovia (Charlotte: layoffs, taxi driver, salary)

[DGarth08]

Hey, just read this in the Charlotte observer...

"Wachovia will remain headquartered in Charlotte, while Wachovia Securities will continue to be based in St. Louis. Citigroup will base its retail bank in Charlotte and its investment bank in New York."

Is this good news or are they just feeding us **** to make us feel better?

[Miker2069]

Originally Posted by XNYgirl

I don't want to sound ignorant, but what is Banking Division vs what other divisons?

Basically if you're securities you should be okay (AGEEdwards, Evergreen, etc.). The move is to dump the bad debt from Goldenwest. So general banking, cib, etc. is citigroup and that's where you'd see the most transition (not overnight mind you but at some point).

Generabl Banking has all the retail accounts, corporate investment banking takes the assets from general banking and plays with it (literally). They bet wrong on Goldenwest. Securities is something totally different so at the moment they will stay wach securities.

[QC Misfit]

Originally Posted by DGarth08

Hey, just read this in the Charlotte observer...

"Wachovia will remain headquartered in Charlotte, while Wachovia Securities will continue to be based in St. Louis. Citigroup will base its retail bank in Charlotte and its investment bank in New York."

Is this good news or are they just feeding us **** to make us feel better?

Prob. bit of both!

[Catbirds]

Is there anyway that the mayor and governor, senators, the people we have elected in our state, can do anything to persuade Citi-Bank to keep a large portion of the business here? If Charlotte loses a large amount of employees, it not only affects Charlotte, but the entire western part of N.C. Does anybody know if the mayor or governor has made any statement?

[anifani821]

Well, I think if you look at Citi's history, and what they have done w/ other banks they have bought out, then perhaps you can get at least some idea re: what they will do w/ Wachovia.

However, I don't know that Citi has bought out another bank as large as Wachovia. Maybe someone else here knows the history or has looked it up? I just have not taken the time to figure it out.

[Miker2069]

Originally Posted by anifani821

Well, I think if you look at Citi's history, and what they have done w/ other banks they have bought out, then perhaps you can get at least some idea re: what they will do w/ Wachovia.

However, I don't know that Citi has bought out another bank as large as Wachovia. Maybe someone else here knows the history or has looked it up? I just have not taken the time to figure it out.

You could potentially post this in the finance or P&O section, as it's a good question. I'm sure there's someone who's with citgroup (or a former employee) who's gone through this and can shed some light on what's to be expected.

[Miker2069]

Talk about a deal! Buy a bank for $1/share. Hopefully most of you didn't buy wach on the second dive hoping for a bounce:

Citigroup to Buy Wachovias Bank Assets for a Share - Mergers, Acquisitions, Venture Capital, Hedge Funds -- DealBook - New York Times

[MaxxMe]

Citigroup Inc. will acquire the bulk of Wachovia's assets and liabilities, including five depository institutions and assume senior and subordinated debt of Wachovia Corp. Wachovia Corporation will continue to own AG Edwards and Evergreen, quoted from the linked article above.

[anifani821]

Originally Posted by Catbirds

Is there anyway that the mayor and governor, senators, the people we have elected in our state, can do anything to persuade Citi-Bank to keep a large portion of the business here? If Charlotte loses a large amount of employees, it not only affects Charlotte, but the entire western part of N.C. Does anybody know if the mayor or governor has made any statement?

Naaawww. There will be lobbying, I am sure, but in the end, corporations make decisions based on economies of scale and best practice in re: to service areas. Charlotte can offer (and I would assume - already has in place) various tax incentives that are designed to entice businesses to come here (and to stay).

Then there is the matter of assets . . . everything from real estate to server locations . . .

But as far as Citi's decisions . . . those will be bottom line . . .

[anifani821]

Originally Posted by Miker2069

You could potentially post this in the finance or P&O section, as it's a good question. I'm sure there's someone who's with citgroup (or a former employee) who's gone through this and can shed some light on what's to be expected.

Good suggestion, Mike! I think I will do just that and see if anyone has info. Or maybe someone has already posted . . . Thanx for the suggestion! Maybe we should check out that forum to see what is being said, since it does directly influence Charlotte.