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Insensitivity: Wachovia Refuses to be Outdone
Your Tax Dollar at Work: While waiting to see if the government will relieve it of bad loans, the bank prepares to send 75 employees on a Mediterranean cruise. Your Tax Dollar at Work: While waiting to see if the government will relieve it of bad loans, the bank prepares to send 75 employees o... more
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Mortgage Mess: Why Won't Lenders Take Your Money?
Here's a case in point to prove the insanity of the mortgage mess created by greedy lenders: a homeowner gets behind a few payments, gets back on her feet and when she tries to pay, they won't take her money. No, apparently lenders would rather have the taxpayers' money. "How can this be?" you ask. No lender WANTS to foreclose, right? Just watch this story from the Tampa NBC affiliate WFLA. It highlights the ridiculous brick wall many homeowners run into when they get behind in payments and try to catch up.
If you're in the position of being foreclosed upon unfairly, go to the link below for information on the "Produce the Note" strategy to help you fight back. Good luck.
http://www.consumerwarningnetwork.com/2008/06/19/produc... Here's a case in point to prove the insanity of the mortgage mess created by greedy lenders: a homeowner gets behind a few payme... more -
Why you should “Beware of geeks bearing formulas”?
Warren Buffett committing a total of $8 billion to...
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Citigroup and Wells Fargo seek compromise on Wachovia
Prodded by the Federal Reserve, Citigroup and Wells Fargo agreed to a cease-fire until Wednesday in the legal warfare over their competing bids for the Wachovia Corporation.
Citigroup and Wells Fargo are continuing talks over several principles that could pave the way for a compromise, like carving Wachovia into parts, according to a person close to the situation who did not want to jeopardize the discussions. But each bank remained adamant that the other is at fault, and the two sides did not appear close to an agreement.
A week ago Monday, Citigroup offered to pay about $1 a share, or about $2.2 billion, for Wachovia's banking operations in a deal brokered by the Federal Deposit Insurance Corporation. But last Friday, Wells Fargo announced that it planned to buy all of Wachovia for seven times the Citigroup offer, with no government assistance. The stunning bid set off a weekend of frantic litigation among all three companies.
Fearful that a protracted legal battle could threaten the financial system, Fed officials, including the chairman, Ben Bernanke, stepped in over the weekend to help mediate the negotiations. Both sides were so angry that they found it difficult to talk directly to each other. But starting late Sunday night, senior executives from both banks began meeting privately, without the help of government officials.
People involved in the talks said that they were hopeful but not optimistic that Citigroup and Wells Fargo could reach an agreement. U.S. regulators are continuing to plan for the potential market fallout if the two sides return to their separate corners. Prodded by the Federal Reserve, Citigroup and Wells Fargo agreed to a cease-fire until Wednesday in the legal warfare over their compe... more -
Bank buyouts raise question of names for venues
Performance venues love blockbuster events, but not the kind that are currently affecting their naming-rights partners.
The stunning takeovers of big banks like Washington Mutual (WaMu) and Wachovia are forcing venues with long-term naming-rights deals with these institutions to grapple with unexpected branding challenges. Some even face the prospect of losing a partner at a time when replacing one lucrative naming-rights deal with another could be a difficult task at best.
The WaMu Theater at Madison Square Garden in New York, the WaMu Theater at Qwest Field in Seattle, the Wachovia Center in Philadelphia and the Wachovia Arena in Wilkes-Barre, Pennsylvania, are among the venues being forced to deal with the fallout of the U.S. financial crisis. Performance venues love blockbuster events, but not the kind that are currently affecting their naming-rights partners. ... more -
Wachovia, Citigroup in Federal Court Over Wells Bid
(Bloomberg) -- Wachovia Corp. asked a federal judge to let a takeover offer from Wells Fargo & Co. proceed and to ignore a state ruling that Citigroup Inc. says makes it the only legal bidder.
The $700 billion federal bailout of the banking industry passed by Congress includes language that permits Wells Fargo to step in, Wachovia's lawyers told U.S. District Court Judge John Koeltl today at an emergency hearing in Manhattan. Citigroup disputed that claim in court filings.
Koeltl said that it ``appears'' Wachovia has the superior argument. He declined to make a ruling on the dispute, giving the parties until Oct. 7 to file briefs on the matter. Lawyers for both sides said they were prepared for a trial in the case.
``This is a matter of considerable urgency,'' David Boies, a lawyer for Wachovia, told Koeltl.
Citigroup, the biggest U.S. bank by assets, is bidding for Wachovia while trying to rebuild after $61 billion of losses tied to the collapse of mortgage markets. The bank wants to buy parts of Wachovia for about $2.16 billion. Wells Fargo is bidding about $15 billion for the whole company. Wachovia said the Wells Fargo bid is a better deal for investors, its workers and taxpayers because, unlike Citigroup, it doesn't rely on U.S. assistance.
State Court
A state judge extended Citigroup's sole right yesterday to negotiate with Charlotte, North Carolina-based Wachovia, the New York-based bank said yesterday in a statement. New York State Supreme Court Justice Charles Ramos issued an emergency order that preserves Citigroup's Sept. 29 ``exclusivity agreement'' with Wachovia ``until further order of the court.''
The accord was set to expire tomorrow. The two banks were scheduled to appear before Ramos on Oct. 10, according to the statement. (Bloomberg) -- Wachovia Corp. asked a federal judge to let a takeover offer from Wells Fargo & Co. proceed and to ignore a state r... more -
Wells Fargo blocked from buying Wachovia
The fight over control of Wachovia intensified Saturday, as a judge temporarily agreed to block the sale of the bank by Wells Fargo, Citigroup announced in a news release.
State Supreme Court Justice Charles Ramos issued the order blocking the sale of Wachovia Corp., which Wells Fargo & Co. had agreed to purchase in a $14.8 billion deal. The fight over control of Wachovia intensified Saturday, as a judge temporarily agreed to block the sale of the bank by Wells Fargo, C... more -
Citi: Wells Fargo blocked from buying Wachovia
NEW YORK -- The fight over control of Wachovia intensified Saturday, as a judge temporarily agreed to block the sale of the bank by Wells Fargo, Citigroup announced in a news release.
State Supreme Court Justice Charles Ramos issued the order blocking the sale of Wachovia Corp., which Wells Fargo & Co. had agreed to purchase in a $14.8 billion deal.
Citigroup Inc. accused Wells Fargo of trying to cut off its earlier takeover offer of Wachovia's banking operations for $2.1 billion in a deal struck with the assistance of the Federal Deposit Insurance Corp. On Friday, four days after that deal was struck, Wells Fargo said it was buying Wachovia.
The litigation pits two of the largest remaining financial institutions against one another as the ongoing credit crisis leads the federal government to arrange marriages and sales among banking entities.
Wells Fargo and Citigroup did not immediately respond to messages left late Saturday seeking comment about the temporary order blocking the sale.
Wachovia spokeswoman Christy Phillips-Brown said in a statement the company believes its agreement with Wells Fargo is "proper, valid and ... in the best interest of shareholders, employees and the American taxpayers."
She said Citigroup is free to make a better offer to Wachovia under that agreement.
The FDIC said Friday that it "stands behind its previously announced agreement with Citigroup." It also said it would review all proposals and work with regulators of all three institutions to resolve the tug-of-war.
Citigroup says it has an exclusivity agreement that bars Wachovia from talking with other potential buyers. Its shares fell sharply after the surprise announcement of the Wells Fargo-Wachovia agreement. NEW YORK -- The fight over control of Wachovia intensified Saturday, as a judge temporarily agreed to block the sale of the bank by We... more -
After Change In Tax Law, Wells Fargo Swoops In
Wells Fargo's deal for Wachovia could cost the federal government billions of dollars in lost revenue as the San Francisco company takes advantage of a new change in federal tax regulations designed to encourage bank mergers. Wells Fargo's deal for Wachovia could cost the federal government billions of dollars in lost revenue as the San Francisco compan... more
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With No Plan B, House Reluctantly Passes Politically Risky Measure
Henry M. Paulson Jr. was in his corner office in the Treasury Department on Monday afternoon, too nervous to turn on his television, when his chief of staff poked his head into the Treasury secretary's office to tell him the stunning news playing out on Capitol Hill: The House had just defeated the Wall Street rescue plan that Paulson had helped craft.
Within minutes, Paulson was on his way across the street to the White House, his senior staff hustling to keep up, for a meeting in the Roosevelt Room with the administration's economic team. There was no time for pleasantries, and before everyone had taken their seats, the former Goldman Sachs chief began firing off options.
Should they push for an immediate vote in the Senate? Should the Democratic leaders be flashed a green light to put together a bill that they could pass on their own, without Republicans? Should they make small changes to win over the dozen or so votes they would need on a second try in the House?
Forty-five minutes into the meeting, they were joined by President Bush, who asked the one question no one had considered: If his plan is not working, what is Plan B?
Paulson looked at his boss, then delivered the answer he did not want to hear: There is no Plan B. The Treasury Department and the Federal Reserve had stretched their authorities to the limits, employing obscure powers never before used to keep their fingers in the dikes. The rescue package had to pass.
Yesterday, when the House reversed itself and approved the package by a 92-vote margin, there was little cause for celebration. Lawmakers had just taken one of the most painful and politically damaging votes of their lives. The stock market was sliding. Both presidential candidates had not only aligned themselves with an unpopular rescue plan and an unpopular president. They had actively worked for the bill's passage.
Many at Paulson's Treasury had already moved on to the next big news out of the financial markets: the sale of Wachovia Bank to Wells Fargo.
"There is no joy," said Rep. Sue Myrick (R-N.C.), a rock-ribbed conservative who switched her "no" vote to a "yes" yesterday, even though a Democratic surge in North Carolina is making her once-easy district look increasingly dicey. "I don't like the bill. I'm not going to defend the bill. . . . I had to do the right thing, even though, politically, it might kill me." Henry M. Paulson Jr. was in his corner office in the Treasury Department on Monday afternoon, too nervous to turn on his television, w... more -
Wells Fargo in a Deal to Buy Wachovia
In a stunning reversal, the Wachovia Corporation said early Friday that it planned to be acquired by a rival bank, Wells Fargo & Company, for about $15.1 billion in stock.
The announcement came four days after Citigroup believed that it had cemented a deal with Wachovia to buy most of its banking operations for $1 a share or $2.2 billion in a deal brokered by federal regulators. With Wachovia on the brink of collapse, the government agreed to cover any losses above $42 billion, an indication of the urgency of regulators to get a deal done.
But Wachovia has now apparently rejected the Citigroup deal in favor of Wells Fargo. That deal calls for Wells Fargo to buy all of Wachovia for $7 a share and requires no assistance from the federal government. Wachovia customer deposits would be protected in both deals.
Still, the agreement requires the approval of Wachovia shareholders and regulators. In an announcement Friday, the Federal Deposit Insurance Corporation, which brokered the Citigroup-Wachovia deal, said that it “stands behind its previously announced agreement with Citigroup.”
Officials from the Federal Reserve, Treasury Department and the Office of the Comptroller of the Currency were all involved in original Citigroup-Wachovia deal. The Fed and the comptroller’s office said in a joint statement that they had not yet reviewed the proposal “and the issues that it raises.”
Citigroup executives learned that its deal was being scuttled early Friday morning after Wachovia’s advisers stopped taking their phone calls, according to people briefed on the transaction. The move left Citigroup executives fuming, and they are weighing their legal options. In a stunning reversal, the Wachovia Corporation said early Friday that it planned to be acquired by a rival bank, Wells Fargo & C... more -
Wells Fargo to buy Wachovia for $15B
Wells Fargo said it expects to take a $10-billion U.S. charge on the transaction, but said in a release it believed the deal would raise earnings "in the first year of operations." Wells Fargo said it expects to take a $10-billion U.S. charge on the transaction, but said in a release it believed the deal would rai... more
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Wachovia execs could end up with millions
His time at Wachovia is likely to cost CEO Bob Steel, who sank $16 million of his personal fortune into the bank's stock, which has since shed about 78 percent of its value.
But a trio of top executives could see fat checks if they leave following the Citigroup deal, which hasn't been finalized. However, they also would be stung by the stock's dismal plunge. Here are potential cash severance payments and the value of benefits such as health insurance:
Ben Jenkins, president of the general bank, with the company since 1971: $17.6 million, including $13.3 million in severance and a $3.7 million bonus.
Steve Cummings, head of corporate and investment banking, with the company since 1998: $20.3 million, including $14.3 million in severance and a $4.25 million bonus.
David Carroll, head of capital management, with the company since 1981: $19.1 million, including $14.1 million in severance and a $4 million bonus.
These payments also include up...
Read The Rest at Link... His time at Wachovia is likely to cost CEO Bob Steel, who sank $16 million of his personal fortune into the bank's stock, which h... more -
Wells Fargo acquiring Wachovia for $15.1 billion
Wells Fargo says it is acquiring Wachovia in an all-stock transaction worth about $15.1 billion, as Wachovia ends talks with rival suitor Citigroup. Wells Fargo says it is acquiring Wachovia in an all-stock transaction worth about $15.1 billion, as Wachovia ends talks with rival sui... more
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Wells Fargo Acquiring Wachovia
Wells Fargo says it is acquiring Wachovia in an all-stock transaction worth about $15.1 billion, as Wachovia ends talks with rival suitor Citigroup. Wells Fargo says it is acquiring Wachovia in an all-stock transaction worth about $15.1 billion, as Wachovia ends talks with rival sui... more
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Wells Fargo Merges with Wachovia
No feds in this deal. Soon we'll be like France where there are only a few banks.
Wells Fargo (NYSE: WFC) last night presented Wachovia with a signed and Board-approved offer to purchase Wachovia Corporation as an intact company and without government assistance in a stock-for-stock merger transaction. Under the Wells Fargo proposal, each share of Wachovia common stock will be exchanged for 0.1991 shares of Wells Fargo common stock, representing a value of $7 per share, based on Wells Fargo's closing stock price on Oct. 2, 2008. No feds in this deal. Soon we'll be like France where there are only a few banks. ... more -
Funds for Colleges Frozen - Wachovia limites College Money
In a move suggesting how the credit crisis could disrupt American higher education, Wachovia Bank has limited the access of nearly 1,000 colleges to $9.3 billion the bank has held for them in a short-term investment fund, raising worries on some campuses about meeting payrolls and other obligations, The New York Times’s Sam Dillon and Katie Zezima reported.
Wachovia, the North Carolina bank that agreed this week to sell its banking operations to Citigroup, has held the money in its role as trustee for a fund used by colleges and universities and managed by a Connecticut nonprofit, Commonfund.
On Monday, Wachovia announced that it would resign its role as trustee of the fund, and would limit access to the fund to 10 percent of each college’s account value. On Tuesday, Commonfund said that by selling some government bonds and other assets held in the fund, it had succeeded in raising its liquidity to 26 percent.
Still, Wachovia’s announcement sent shock waves through higher education, sending hundreds of college presidents rushing to check their financial vulnerability on every front.
Some smaller colleges that had not previously arranged lines of credit were feverishly seeking to negotiate those on Wednesday. And some large institutions said they were facing, at the least, a major financial inconvenience as a result of Wachovia’s action. In a move suggesting how the credit crisis could disrupt American higher education, Wachovia Bank has limited the access of nearly 1,0... more -
Crunched by the Credit Crisis
Some nice visualizations of the crisis:
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The 10 VILLIANS Responsible For DESTROYING the American Economy!
It took 19 hijackers to fuck up America for a good long time. It only took 10 of these cunts to destroy the American economy. Probably permanently. And all 10 will skate away scott free. It took 19 hijackers to fuck up America for a good long time. It only took 10 of these cunts to destroy the American economy. Probably... more
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Citigroup buys Wachovia
The government says Citigroup will acquire the banking operations of Wachovia in a deal facilitated by the Federal Deposit Insurance Corp.
The FDIC says Wachovia didn't fail, and that all depositors are protected and there will be no cost to the Deposit Insurance Fund. The government says Citigroup will acquire the banking operations of Wachovia in a deal facilitated by the Federal Deposit Insurance C... more
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