---Citigroup Buys Banking Operations of Wachovia----

[1corona4u]

“There will be no interruption in services and bank customers should expect business as usual,” the F.D.I.C. chairman, Sheila C. Bair, said.

The move was necessary, the F.D.I.C. said, to avoid serious fallout on economic conditions and financial stability.

“This morning’s decision was made under extraordinary circumstances with significant consultation among the regulators and Treasury,” Ms. Bair said. “This action was necessary to maintain confidence in the banking industry given current financial market conditions.”

The sale would further concentrate Americans’ bank deposits in the hands of just three banks: Bank of America, JPMorgan Chase and Citigroup. Together, those three would be so large that they would dominate the industry, with unrivaled power to set prices for their loans and services. Given their size and reach, the institutions would probably come under greater scrutiny from federal regulators. Some small and midsize banks, already under pressure, might have little choice but to seek suitors.




http://www.nytimes.com/2008/09/30/business/30bank.html?ref=business

[timber84]

1. 5,000 people where I live probably just lost their jobs

I'm in Charlotte, home of Wachovia.

[1corona4u]

2. I HATE Citygroup.

Guess I will have to just suck it up. Because, you know, there is no financial crisis. The last paragraph in that post above says it all to me.

[Erin Elizabeth]

3. Ha! They're BUILDING a new Wachovia branch just a few

blocks from my house. The Wachovia sign just went up on it this morning.

What irony. I bank at Wamu (or did, anyway), my graduate school loans are financed through Wachovia, now all I need is for a couple more financial institutions to get bought out/go belly up and the circle will be complete!

[1corona4u]

5. Yeah, I'm disturbed about this whole thing.

And if their customer service goes the way of the Citygroup that I know from the past, I will seek other alternatives. Wachovia had great customer service, and if Citygroup wants to keep their customers, they need to leave things as they are. But I don't think they will.

This is a very disturbing statement;

"The sale would further concentrate Americans’ bank deposits in the hands of just three banks: Bank of America, JPMorgan Chase and Citigroup. Together, those three would be so large that they would dominate the industry, with unrivaled power to set prices for their loans and services. Given their size and reach, the institutions would probably come under greater scrutiny from federal regulators. Some small and midsize banks, already under pressure, might have little choice but to seek suitors.

[Barack_America]

4. I thought Citigroup was broke?

:shrug:

[stillcool]

9. didn't a middle-east prince...

bail them out recently?

[terrya]

6. It's going to come to the point where there will only be 2 or 3 banks in this country.

I was with Washington Mutual...excuse me, JP Chase.

[1corona4u]

7. Honestly though, I had WaMu years ago....

and I hated them. I think you will like Chase. I've never had an issue with them. Well, ok one, but it was really a matter of some customer service rep not knowing what the hell she was talking about.

[1corona4u]

8. Kicking for frenchie to read....

if you're around....

[1corona4u]

10. From the Wavhovia website;

Wachovia Corporation to become a focused leader in retail brokerage and asset management.

CHARLOTTE, NC—Wachovia today announced intentions to sell its retail bank, corporate and investment bank and wealth management businesses to Citigroup. Wachovia Corporation will remain a public company with two main operating subsidiaries: Wachovia Securities, the nation's third largest brokerage firm, and Evergreen Asset Management, a leading provider of asset management services.


"During recent weeks, the financial landscape has changed significantly and presented us with unprecedented challenges," said Robert K. Steel, CEO and President of Wachovia. "Today's announcement is the best alternative for the company, enabling a resolution on the Golden West portfolio."

Under terms of the transaction, Citigroup will pay $2.1 billion to Wachovia and assume the senior and subordinated debt of Wachovia Corporation.

The transaction is expected to close before year-end. It has been approved by directors of both companies and is subject to shareholder approval of Wachovia and the appropriate regulatory approvals.

Customers of both companies should continue banking as usual, and feel confident that their deposits are secure. Also, employees and vendors should continue to operate business as usual.

At this time, there are no changes to Wachovia's board of directors and two Wachovia directors will join Citigroup's board.

Wachovia Corp. will remain headquartered in Charlotte, NC. Wachovia Securities will continue to be headquartered in St. Louis, MO. Citigroup will headquarter the retail bank in Charlotte and the investment bank in New York.

Wachovia's investment bankers were Goldman Sachs, Perella Weinberg Partners and Wachovia Securities, and its legal advisors are Sullivan & Cromwell and Simpson Thacher & Bartlett.

About Wachovia
Wachovia Corporation (NYSE:WB) is one of the nation's largest diversified financial services companies, with assets of $812.4 billion and market capitalization of $33.5 billion at June 30, 2008. Wachovia provides a broad range of retail banking and brokerage, asset and wealth management, and corporate and investment banking products and services to customers through 3,300 retail financial centers in 21 states from Connecticut to Florida and west to Texas and California, and nationwide retail brokerage, mortgage lending and auto finance businesses. Globally, clients are served in selected corporate and institutional sectors and through more than 40 international offices. Our retail brokerage operations under the Wachovia Securities brand name manage more than $1.1 trillion in client assets through 14,600 financial advisors in 1,500 offices nationwide. Online banking is available at wachovia.com; online brokerage products and services at wachoviasec.com; and investment products and services at evergreeninvestments.com.

[FrenchieCat]

14. Yep.....This is why this is not a headfake.

Wachovia holds my mortgage.

[Blackhatjack]

11. The Wachovia 'Merger' Just Created Lots of Obama Voters In North Carolina...

Citigroup will layoff thousands of Wachovia workers based in and around Charlotte, NC.

There will be moments of clarity for thousands receiving their pink slips as they look back on what 8 years of Bush did to our Economy and their prospects for finding a new job in their chosen field of work.

I would imagine that the McCain Campaign promises to give the corporations more tax cuts won't cheer up this group who will be filing for unemployment along with so many of their coworkers.

Obama's Campaign promises will look better to them now...

[timber84]

12. Tthere was a story in the Charlotte Business Journal about a month

ago that stated more employees at BOFA and Wachovia were contributing more to Obama than McCain at the time.

[1corona4u]

13. I'm going to start looking for other banking alternatives.

I will look into Suntrust, and see what their financial status is. They hold my auto loan, and I may as well see what they offer long term, because I don't want Citygroup to make ANY money off of me. It will be a nightmare for me to move everything, but I think I need to.

[AllentownJake]

17. and Philadelphia suburbs

Huge operations in Philadelphia from when Wachovia acquired First Union 8 or so years ago.

[scheming daemons]

15. This will CONTINUE TO HAPPEN until we get a bailout passed....

[msallied]

16. I'm getting an ulcer from all of this.