Wachovia merging w/ Citigroup
20 RepliesJump to last post
I just heard Wachovia is in talks with Citigroup about a merger. What will this do to Smith Barney?
I don't know, no one really knows until it happens. My guess would be that the banking units would merge. SB and AGE would still operate as they are.
That's just what makes sense to me. I don't really think that will happen though. It wouldn't surprise me if both Wachovia and Citigroup failed (more so without a bailout plan). Who knows. Anything goes right now.Well, if they don't get something done, and the domino's fall....watch out...half of us will be done in a mere few months. If you can't depend on the banks, no one will put money into the market...
[quote=bspears]
Well, if they don't get something done, and the domino's fall....watch out...half of us will be done in a mere few months. If you can't depend on the banks, no one will put money into the market...
[/quote] Don't worry. We could all go into politics. Should be a lot of open seats there soon enough...the douchebags.Another LPL guy called his congressman and ripped his ass…on the answering machine. I think the whole system needs revamped…term limits, no lobbying, balanced budget in the consititution, flat tax, raise S.S. age to 70, medicare to 67. Budweiser to stay an American company and Ed Jones merged into Amway.
Most likely, Citigroup probably would keep the bank and Smith Barney, and spin AG Edwards off.
Hopefully the WB name would disappear faster than the AGe name did. And the we could be SB brokers rather than WB brokers. I am sick of having to explain the situation of our firm as well as the market as well as asking to be able to feed my family next month with anything other than next months paycheck.
wont happen. Just wait for them to fail and swoop in and cherry pick the deposits a la JP Morgan.
That's the same thing I heard this morning, that Wachovia is at risk of going under and Citi might be looking for a deal.They are not in talks to merge. They are in talks for Citi to eat Wach
I think deals will get done at the 11th hour at the point of desparation. This is when everything REALLY goes on sale.
This is why I give John Thain credit. He had the foresight to see the writing on the wall. He made a deal and got some value before the firesale.
I had to re-read and re-check the sentence that just jumped out on the CNBC article. “Wachovia has about $120 billion of bad debt on it’s books.”
[quote=lady_trader]I had to re-read and re-check the sentence that just jumped out on the CNBC article. “Wachovia has about $120 billion of bad debt on it’s books.”[/quote]
That isn’t really news…those are the loans they took on when the bank bought Golden West a few years ago…like with every other Bank who really knows how many are actually Bad…that is why we are all in this mess to begine with.
The “$120B of bad debt” is really $120B of mortgages assumed from the purchase of Golden West. I believe 11% of those mortgages are past 30 days which equals $14B of bad debt. I might have the numbers slightly off…I’m going from memory on a Dow Jones Newswires article I read Thu or Fri.
[quote=lady_trader]I had to re-read and re-check the sentence that just jumped out on the CNBC article. “Wachovia has about $120 billion of bad debt on it’s books.”[/quote]
WB has 122Billion in option arm mortgages. It can’t all be bad debt now can it? FING media always always goes for the big headline and damn the facts!!
This is a government rescue. C only taking % of losses (42bil). Uncle Sam involved in the rest. Equity and bond holders get crushed…
Looks like C is ONLY buying the banking division, leaving the wealth management unit intact.
Interesting. WB doing the opposite of everyone else - divesting their banking unit.Interesting…was it Three ( 3 ) Trillion for Subprime? Now we are seeing where the paper is starting to show up and 1) Washington Mutual , 2) Wachovia , 3) Paribus ( France ) and 4) Fortis ( Netherlands ) …and who’s next