Just in citigroup aquires wachovia (Charlotte: leasing, employment, buy)

[anifani821]

Here are some of what CITI considers benefits to acquiring Wachovia:

Retail Banking Benefits:

Technology
Strong in-house retail and commercial banking platform
Highly scalable
Expect a 2-year time frame for migration to Wachovia platform
Strong Talent Pool
Integration capabilities
Successful track record of merger integrations
Opportunity to market in 3,346 Wachovia branches (e.g. Cards/Consumer Finance

Corporate and Investment Banking:

Top 3 largest domestic cash management services provider
Complements Citi’s global footprint
U.S. mid-market corporate franchise enhances Citi’s position


Not finding much to suggest what will happen w/ actual operations of overlapping products . . . nothing about absorption of jobs . . .

[QC Misfit]

Wachovia's Sale Could Mean Layoffs In Charlotte - Money News Story - WSOC Charlotte

[anifani821]

To those asking about stock . . . things will rebound. Citi will be a good match w/ Wachovia.

[Carolina Blue]

Originally Posted by DawnW

Those of you quoting the 20K jobs.....the problem is that Citigroup only bought the banking portion, so how many of those 20K are actually banking or investing?

The rest of Wachovia is yet to be determined or bought out.

There is still a huge amount of uncertainty with much of that company.

The fall out from this could be well over what the Wachovia problem is. For example, my DH's firm audits Wachovia as their largest client in the auditing dept. in Charlotte. They may have to all go out of Charlotte. Thankfully, my DH isn't in that department.

We just don't really know yet what will happen.

Dawn

Well here’s my good news/bad news take…

Good news – As noted, the retail bank will still be headquartered here, and I’ve said many times before that any acquisition would see the acquirer keep a major portion of workers here. So with the retail bank here, that will insure a lot of jobs stay and even some execs. Also, as you’ve said, there is still a Wachovia. Evergreen will still be here and even though Wachovia Securities is headquarted in St. Louis, my understanding is that there are still several hundreds if not thousands of Wachovia Securities people in Charlotte. CNBC also just reported what I suggested this morning, that Wachovia Securities will look to consider buying some other bank in the future. So for all the Pat McCrory/Chamber types, the news that Wachovia as a corporation will still be here is good news, and the city is actually picking up a new corporate citizen in Citi.

Bad News – Groups like Commercial Banking and IT will move to New York, and with that, will see several job losses. Also ancillary services like local accounting and legal that supported those business units will more than likely see several job losses, rather internal or outsourced currently. But at the end of the day, I think Charlotte will come out much better than Wachovia locations in the Northeast like Philly, where there is overlap in retail and commercial clients

[Barkingowl]

Originally Posted by anifani821

To those asking about stock . . . things will rebound. Citi will be a good match w/ Wachovia.

Unless Citi's stock swirls further down the toilet. Who's interested in buying Citi these days?

[amploud]

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?

Of course they can persude them to stay: money talks! A few kajillion in tax credits ought to do the trick.

[NCguy]

Hi,

Here's a brief and more positive spin on the remainder of the company:

The New Wachovia - BusinessWeek

[anifani821]

Originally Posted by Barkingowl

Unless Citi's stock swirls further down the toilet. Who's interested in buying Citi these days?

Morgan Keegan is saying Wach stock is probably worth $5-7 . . .

"I would say that what is left -- the retail brokerage and Evergreen -- is worth about $5 a share to $7 a share," said Robert Patten, a banking analyst with Morgan Keegan & Co.

[emagine]

Bad News – Groups like Commercial Banking and IT will move to New York, and with that, will see several job losses

Can I ask where you got this information? I would hope indeed your wrong. I also hope smoke was not blown up my DH butt when he was told IT and infrastructure would remain in Charlotte.

The feeling there today, and I know it is early, is a restructure but not a major loss. Like any merger though, it will take months to work out. So fingers crossed!

I do agree this is a depressing thread!

[TheEmissary]

Wachovia's problems will seem miniscule if the bailout bill is not finalized in some sort of way! If there is still a lot of rancor over this, the Dow-Jones will be at 9000 by tomorrow afternoon. Those European banks seem to be just as shaky as ours! I guess they all took Gordon Gekko at his word - "Greed is Good". As I'm writing this the bill has failed! Hold on to your wallets and bankbooks, it's going to be a bumpy ride!