What Wachovia Customers Need to Know

The Wall Street Journal - Deal Journal ^ | 2008-09-29 | Mary Pilon

[rabscuttle385]

Call it the birth of Citichovia.

In another day of Wall Street’s epic saga, news came today that Citigroup will acquire Wachovia’s banking operations for $2.1 billion in stock and will assume another $53 billion in Wachovia debt.

Which leaves Wachovia customers scratching their heads, as Washington Mutual customers were last week.

But there’s a big difference between the Wachovia and WaMu dealings — time.

[rabscuttle385]

I bank with Citi, and right now, the nearest branch is two hours away, so I suppose that it's nice that soon they will be everywhere, just like Bank of America.

. . . . .

The Money, Banking, and Financial Markets Ping List.

FR Keyword: moneylist

This can be a high-volume ping list at times.

To join, send Freepmail to rabscuttle385.

[scooby321]

Dumb ass Wachovia paid over 30 Billion for Golden West and ts commie owners Simon brothers gave them 64% of their mortgages that are now resetting.

[MrChips]

Wachovia not long ago purchased A.G. Edwards, where I have my brokerage accounts. Is there a reason for me to be concerned about this merger?

[autumnraine]

I am not in any way a economist, but it seems that people are just shuffling debt. Like folks that pay off credit cards with other, lower interest credit cards and postponing paying them off.

I don’t know. Maybe this is a good thing and we won’t have to rescue Citigroup in 2 months.

[scooby321]

AG Edwards and Wachovia securities with Insurance business are now stand alone debt free businesses.

[wideawake]

According to the press release, the wealth management business and the brokerage will now be an independent company, with all the mortgage loans and the Wachovia debt going to Citi.

[FreeInWV]

Don’t the Saudis own a near controlling stake in Citi?

[Perdogg]

I heard something on the radio tonight. I live in metro DC area on WMAL Rick Edledman, financial guru, had a special about the “crises”.

He said a family had all of their retirement, plus their kid’s college fund, in Wachovia stock. All $500,000 of it.

[rabscuttle385]

He said a family had all of their retirement, plus their kid’s college fund, in Wachovia stock. All $500,000 of it.

Now that was exceedingly stupid.

[Gondring]

Under the agreement, Citigroup Inc. will absorb up to $42 billion of losses on a $312 billion pool of loans. The FDIC will absorb losses beyond that. Citigroup has granted the FDIC $12 billion in preferred stock and warrants to compensate the FDIC for bearing this risk.

Oh, joy!

[Starrling]

Same here, MrChips. I’m an A.G. Edwards customer and am left scratching my head.

[Misterioso]

Where did your headline come from?

[Gondring]

He said a family had all of their retirement, plus their kid’s college fund, in Wachovia stock. All $500,000 of it.

You were talking up Wachovia a few weeks back, saying it wasn't in serious trouble...I hope that family wasn't yours!

[Starrling]

Thanks!

[rabscuttle385]

Where did your headline come from?

Try this link. I was reading two stories on WSJ's Web site and pasted the wrong link in.

[Gondring]

Another link with info about what this means to Wachovia...
http://www.bankrate.com/brm/news/investing/bankrate_investing_news_e1.asp

[MrChips]

From a post to me below: “According to the press release, the wealth management business and the brokerage will now be an independent company, with all the mortgage loans and the Wachovia debt going to Citi.”

[Wiggins]

I hope I still have my Roth IRA?

[Perdogg]

The problem with Wachovia is that investors panicked. There were several articles by “experts” who said there was nothing with Wachovia in the near short term. But ever since Barclay sank the market, in my opinion, to get Lehmans. Wachovia had to find a buyer.