Someone should put a stagecoach up there...heehee.
Posted on 10/03/2008 8:57:03 AM PDT by NCjim
“Citi was negotiating in good faith”
Good Faith with the American taxpayer’s cash?
More proof the the big banks don’t need our money to save our economy.
Having participated in a few deals, I can’t imagine that there were not “terms sheets” circulated from the outset. Generally with disclaimers about not being binding, etc., but the terms sheets outline the deal on the major points that will be reflected in the final contract.
The question becomes was there a meeting of the minds and a binding agreement. Depending on how far the negotiations went, this could be similar to Pennzoil/Texaco case in the early 1980’s. There was a drafted but unsigned contract in that case but I doubt things had progressed to that stage with Citigroup, just given the time frame.
Jack
Jack
Sounds like someone has already figured out where the chips need to fall to bring about a specific outcome.
Wells is definitely exposed.
Wells is definitely exposed.
Shareholders had not approved the Citi deal and I doubt they would have. They definitely won’t now that the Wells Fargo deal is on the table. The government can’t force the Citi deal on the shareholders. Simple as that.
Wells just skipped ahead in the bailout ticket purchase line.
That has a whole bunch of feds in a tizzy.
I like that!
Watch the Feds come out and rail against Wells Fargo for its "Greed!"
What a laugh.
“Wells Fargo eagerly solicites new accounts from illegal aliens.”
Live right in the middle of them - EVERY bank in the area solicits them. Want to inquire about your bank account at BofA by phone, legals enter SS#, illegals don’t. It’s kind of like “pick your poison”. At least WF didn’t use bailout money to complete deal. If true, that at least says something for them.
Both buyer and seller knew that there could be no deal under their terms until the stockholders voted.
WB might be vulnerable to some smaller damages if they violated some valid agreements, such as maybe an agreement that WB would not use the Citi offer to shop for other offers....
But I doubt they can force their deal to go through.
The stockholders will kill that in the manner I described.
Ya, but their underwriting is better than any of the other major players and they mitigate their risk well.
I would hold off on that ne. They have a metric ton+ of Option ARMs and HELOCS that are in real trouble.
The angelic one, the Great Oracle From Omaha, owns a lot of WFC, and he’s now also a big stockholder in GS.
So, anything Warren touches will be saved by our tax dollars.
Bet on it.
Bwahaha ! Sold to you !
They are exposed on the west coast and a bit in FL.
Their loan portfolio is frighteningly loaded with seconds and Option ARMS on RE in very distressed areas.
Yes, I’m not sure how Wells Fargo has managed to convince everybody that they are so well-managed that they have no exposure - better spin control that the other banks, I guess. Or perhaps because the phrase “Option ARMS” hasn’t entered the national lexicon yet, everyone is still stuck on “subprime”.
Don't get me wrong. I have my personal and business operating accounts at Wells and have been doing business with them for 18 years, so I am not looking for them to implode any time soon. I just think that ALL banks involved in toxihybrid lending should be scrutinized. Too many people have been burned when they have assumed that their bank/investments are immune.
My employer (Lowe’s) does its banking through Wachovia, so everybody at the store has been watching this with great interest.
Link to the Wachovia/Citigroup exclusivity agreement.
http://media.charlotteobserver.com/smedia/2008/10/03/12/citipact.source.prod_affiliate.138.pdf
oh well....Citibank has to raise their offer 700% to match Wells Fargo.
The Bailout bill passed...these loans can be sold to the US Treasury now.
Someone should put a stagecoach up there...heehee.
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