Citigroup, Wachovia merger to impact Jacksonville

[uptowngirl]

Well looks like Wells Fargo will be the proud owner of Wchovia with NO federal assistance... for 15.1 BB instead of 2.1BB YEAH!!!

http://www.msnbc.msn.com/id/27005897

[gradco2004]

um  guys.  If FDIC mandated the sale (it did) then it failed.

It didnt 'crash'.  It failed.

Wachovia Employee here.

[1] Wachovia has not failed. We have announced INTENT to sell to CitiGroup; so that we do not eventually fail. This is a merger, not a bank failure. Our stock was still at $10.00 as of Friday.

[2] The sale is not FDIC mandated. FDIC is pulled into the deal to help Citi absorb a portion of the mortgage debt. Not to help Wachovia pay demand deposit accounts.

[3] The merger has not been approved, it is pending approval from shareholders, such as myself.

[4] A name change has not been mandated with the merger proposal. Wachovia's #1 customer service status is being weighed against Citi's name. More than likely, the retail (personal accts) will become Citi, and the wholesale (business accts) - which are a different division - will remain under the Wachovia name. Wachovia Securities & Wachovia Evergreen were not sold, and will remain seperate operations under the Wachovia name.

[5] If a banker told you a timeline on a name change, one of you is lying, plain and simple. Or corporate communication yesterday did not outline any potential timeline on a name change, and said that he merger will last through the end of 2010 - potentially longer.

[6] Only customers making a "run" on the bank could cause it to fail at this point. Our liquid capital is still within the fed requirements, but exorbitant mortgage debt would eventually eat up all of our liquidity reserves (18 - 24 months).

[7] As a shareholder, I will vote to approve the merger, and welcome it with open arms. I support mergers like this, rather than a bailout. Most employees who understand BASIC economic concepts understand that this sale is necessary, and that the merger MUST happen within 24 months.

Sorry to burst your bubble, but if the FDIC had not stepped in, Wachovia would have failed on Monday. http://www.charlotteobserver.com/business/story/226799.html

I would like to apologize, as I stand corrected. My information was correct as of the time Wachovia Employees were notified. This is a case of the outside being more aware than the inside. I had no intent to intentionally mislead anyone. My information was based on a corporate communication at the time.

[gradco2004]

Well looks like Wells Fargo will be the proud owner of Wchovia with NO federal assistance... for 15.1 BB instead of 2.1BB YEAH!!!

http://www.msnbc.msn.com/id/27005897

As I stated 4 days ago, about our customers being the ones to destroy the bank... looks like they made that happen sooner than later. Why are these people so stupid? I find it hard to be tolerant of financially illiterate people sometimes.

[thelakelander]

• Wachovia Corporation Vice President of Human Resources Pamela Davis has informed the City that Wachovia will lay off 59 employees from its Baymeadows Way office. The layoffs started last Tuesday and will run through the end of the year.

http://www.jaxdailyrecord.com/citynotes.php

[Jason]

59 isn't as bad as I thought it would be.  I sure hope those poor folks will be able to line up another job.

Any word on the Deutche Bank opening up?

[thelakelander]

I don't think this has anything to do with Wachovia merging.  With Wells Fargo and Citigroup fighting over them, that's still up in the air.

I think Deutche is already open.  They had an office here before the big announcement. 

[Driven1]

it's official:  there is no Citigroup - Wachovia merger.

they gave up (except for the matter of a lawsuit) and Wachovia (THANKFULLY) is going to WFC (Wells Fargo).

ps - wasn't it good to actually see 2 banks fighting over another bank?  proving that there is hope yet.

[jbirch82]

A Citigroup merger would have been better for the city of Jacksonville. It would have provided ties to a world wide banking institution, not just a US bank. Wachovia should be ashamed of themselves for their bait and switch tactics.

[Driven1]

WFC merger is MANY TIMES (5 to be exact) better for Wachovia shareholders.  not to mention for the Wachovia investment advisors.  i read a story yesterday that they were all FREAKING OUT when they heard they were going to Citi and then were very jubiliant when the WFC deal news came in.  Wachovia has the 3rd largest brokerage business (after aquiring AG Edwards).  Citi's brokerage division is Smith Barney and obviously doesn't have the very best reputation.

plus, Citi was already (has been for quite some time) the #1 largest banking institution in the country.  they didn't need to swallow the third largest. 

[jaxmortgageguy]

Guys... This deal will make Wells a MONSTER as well..

[Driven1]

Guys... This deal will make Wells a MONSTER as well..

better to have 2 monsters than 1 

btw, Bank of America is currently the 2nd largest...will really be 3 monsters (Especially with ML going to BAC).

[thelakelander]

Wells Fargo's decision to take over Wachovia could be good for Jax.

Wells Fargo's Wachovia buy could benefit Jacksonville

Wells Fargo has no banking presence in Florida, could add workers in Jacksonville.

By Mark Basch, The Times-Union

Now that the fight to buy out Wachovia Corp. is over, one banking analyst says this deal could turn out to be a positive for Jacksonville.

Wells Fargo & Co. announced on Friday that it was proceeding with its plans to buy Wachovia, after Citigroup Inc. gave up its attempt to acquire Wachovia's banking operations. The Wells Fargo-Wachovia deal got quick approval over the weekend from two federal regulators and seems on target to be completed by the end of the year.

And that seems to be good news for Wachovia Corp.'s 3,000 employees in the Jacksonville area.

"From Jacksonville's point of view, Wells Fargo is a much better buyer than Citigroup," said Ben Bishop, chairman of Allen C. Ewing & Co. in Jacksonville.

full article: http://www.jacksonville.com/tu-online/stories/101408/bus_343588954.shtml

[BridgeTroll]

WFC merger is MANY TIMES (5 to be exact) better for Wachovia shareholders.  not to mention for the Wachovia investment advisors.  i read a story yesterday that they were all FREAKING OUT when they heard they were going to Citi and then were very jubiliant when the WFC deal news came in.  Wachovia has the 3rd largest brokerage business (after aquiring AG Edwards).  Citi's brokerage division is Smith Barney and obviously doesn't have the very best reputation.

plus, Citi was already (has been for quite some time) the #1 largest banking institution in the country.  they didn't need to swallow the third largest. 

excellent points Driven, and I have been hearing the same thing on the local level as well.

No one wants another bank thats "Too big to fail".

This worries me also.  We have just been through the "too big to fail scenario.  Perhaps the next administration should consider a break up of these fine instutions similar to the great AT&T break up into baby bells...