Free Republic

Wells Wins Rounds In Fight For Wachovia Liz Moyer, 10.05.08, 11:24 PM ET The battle between Citigroup and Wells Fargo for Wachovia continued late into Sunday, with federal court appearances, a tussle in New York State court and ongoing negotiations between all parties in a merger dispute that now involves the Federal Reserve. Wachovia sued erstwhile suitor Citigroup in federal court in New York on Sunday, winning a hearing date for Tuesday in its attempt to back out of a deal in principle struck last Monday under which Citi, working with the FDIC, was to pay $2 billion to buy...

Wachovia, one of America's major banks, has seen its stock price plummet over the last few months and will be purchased either by Citibank for the proverbial song -- a few dollars a share for a stock that sold at more than $50 a share late last year -- or by Wells Fargo at a premium. What brought about the wreckage of Wachovia?

Citigroup announced late Saturday that it had persuaded a New York judge to temporarily block Wells Fargo from acquiring Wachovia, firing the first shot in what could be a prolonged legal battle. Citigroup has accused Wells Fargo of wrecking its plan to acquire Wachovia’s banking operations for $2.2 billion, or $1 a share, in a deal arranged by the Federal Deposit Insurance Corporation. Four days after that deal was struck, it fell apart when Wachovia agreed to Wells Fargo’s offer to pay seven times as much for the entire company. The underlying battle is over which company will emerge from...

A battle broke out for control of Wachovia on Friday as Wells Fargo signed a $15.1 billion agreement to buy the Charlotte, N.C.-based bank, while Citigroup and the federal regulators backing its earlier deal insisted that Citi's takeover bid go forward.

A big bank acquisition and hopes that a Wall Street bailout will pass Congress Friday afternoon pushed stocks higher, outweighing a weak jobs report. The Dow Jones Industrial Average, which slid almost 350 points in the previous session, recently posted a 206-point gain, trading up 2%, at 10688.66. Investors' mood was boosted by news that Wachovia has agreed to sell itself to Wells Fargo in a $15.4 billion takeover that will require no government assistance, scrapping a federally backed deal with Citigroup. Wachovia shares surged more than 71% in recent action and Wells Fargo rose about 8% while Citi was...

NEW YORK - 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.

A fund that invests cash for about 1,000 colleges and private schools suddenly froze withdrawals this week, leaving school finance managers scrambling to make sure they have enough money for payroll and other bills. For 34 years, colleges and schools parked cash in the now $9.3 billion fund, which offered returns slightly above U.S. Treasury bills. That it now might take years for the institutions to get all of their money back shows how widely credit-market woes are reverberating beyond Wall Street. Monday, Wachovia Corp., the fund's trustee, said it was terminating the fund, liquidating its assets, distributing the proceeds...

CNBC's Mad Money showhost Jim Cramer made an on-air apology last night (9/30/08) for recommending Wachovia stock just 2-weeks ago. His recommendation followed a Mad Money appearance by Wachovia's CEO Robert Steel. On Sept. 15, the day Steel appeared on the Cramer's TV show, Wachovia stock closed at $10.71 per share. On Sept. 29th, it closed at $1.84 per share. Youtube likely has the clip showing Steel's appearance. And last night after Wachovia's implosion, comes Cramer's apology: "I let you down, because I wasn't skeptical enough." Compare Cramer's "I let you down because I wasn't skeptical enough" statement with America's...

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.

Wachovia Bank, a major institution, has seen its stock plummet and its continued viability called into question, as the nation's financial crisis muddles forward. [Update: shortly after publication of this article, Citigroup agreed to purchase Wachovia's banking operations in a deal facilitated by the FDIC.] Largely ignored in this crisis is the key role played by Herbert and Marion Sandler, founders of Golden West Financial (GDW), one of the largest savings and loans in the nation. Wachovia purchased GDW for $24 billion dollars in 2006. This was one of the worst merger and acquisition deals of all time for the...

Link only

Federal regulators are pressing Wachovia Corp. to sell itself, and Wells Fargo has emerged as the leading candidate to buy the Charlotte bank amid intensifying talks, according to reports late Sunday. The Wall Street Journal reported that Wachovia is also talking with Citigroup but that San Francisco-based Wells appeared to have the upper hand. Even as Congress unveiled a bailout plan to help banks offload troubled assets, Federal Reserve and U.S. Treasury Department officials were pushing for a more dramatic solution for Wachovia, the New York Times reported. A sale would mean that an N.C. institution that became a nationwide...

Wachovia Corp. is reportedly in preliminary talks with suitors including Banco Santander SA, Wells Fargo & Co. and Citigroup Inc., and the bank's shares slid lower in late trading on concerns it may take another big mortgage-related write-down. A sale to either Banco Santander, Wells Fargo, or Citigroup would make Wachovia the latest victim of the ongoing credit crisis, as the bank has succumbed to the triple threat of falling real estate prices, overaggressive lending and panic in the credit markets.

Although Wachovia Corp. has been mentioned as one of the more troubled big U.S. banks, at least some analysts believe it is not at risk and is unlikely to suffer the same fate of Washington Mutual Inc. They also believe that Wachovia will be able to survive on its own, without merging with another big financial institution. Still, shares of the Charlotte, N.C.-based bank plunged Friday as investors, the day after WaMu's failure, shifted their focus to other financial institutions that also suffer under the weight of mounting losses tied to toxic assets. Shares plummeted $4.90, or 35.8 percent, to...

Wachovia has begun preliminary talks with Citigroup about a potential merger, people briefed on the matter said Friday afternoon. Feelers have also been extended between Wachovia and Wells Fargo and Spain’s Banco Santander, these people said. These talks are early, however, and no deal may emerge from them.

The Financial Times this evening offers an update on the Morgan Stanley (MS) merger scenario that claims Morgan is more interested in taking financing from China Investment Corp., China’s sovereign fund, than it is in merging with Wachovia Bank (WB). Both firms have been rumored in the last 24 hours as potential saviors for Morgan’s rapidly eroding share price.

Morgan Stanley, one of the two last major American investment banks, is considering a merger with Wachovia or another bank, according to people briefed on the discussions. Morgan Stanley’s chief executive, John J. Mack, received a telephone call on Wednesday from Wachovia expressing interest in the Wall Street bank. Morgan Stanley is considering other options as well. Other banks have also expressed interest in Morgan Stanley. The talks are preliminary and no deal may emerge, these people cautioned. But if one is reached, it would mark the end of Morgan Stanley, one of the descendants of the original J. P....

Posted on Wed, Aug. 27, 2008 Wachovia cutting home-equity credit lines By Harold Brubaker Inquirer Staff Writer In the middle of remodeling the kitchen of their Gloucester County house, Paul and Julianne Gablin received a letter from Wachovia Bank canceling the line of credit they were using to pay for the project. Luckily for them, the Gablins own a house in Florida with another line of credit from Wachovia and were able to tap it to pay for the custom cabinets delivered yesterday. Still, the episode has soured him on Wachovia because he has always made his loan payments, Paul...

The global financial crisis is set to get worse, with a large US bank likely to collapse in the next few months, a former IMF chief economist has warned. Kenneth Rogoff's comments came as shares in Fannie Mae and Freddie Mac sank on a report that the home lenders would, in effect, be nationalised. Despite hopes that the US economy had turned the corner, Mr Rogoff claimed it was "not out of the woods". "I would even go further to say 'the worst is to come'," he said. "We're not just going to see mid-sized banks go under in the...

New York securities probe widens New York attorney general, Andrew Cuomo, is expanding investigation to include JP Morgan, Morgan Stanley and Wachovia Suzy Jagger Andrew Cuomo, the New York Attorney General, has renewed his onslaught against America's biggest banks, announcing that he is now pursuing three other financial institutions for compensation from the auction rate securities (ARS) debacle. Mr Cuomo said that he had contacted Wall Street banks JP Morgan Chase, Morgan Stanley and the American mortgage lender, Wachovia, and insisted that they begin settlement talks with lawyers representing the state of New York. On Thursday, Citigroup and Merrill Lynch...

Wachovia Corp, the fourth-largest U.S. bank, on Tuesday posted an $8.86 billion second-quarter loss, slashed its dividend and announced 6,350 job cuts after losses tied to mortgages soared. Its shares fell $1.67, or 12.7 percent, to $11.51 in premarket trading. The net loss for the Charlotte, North Carolina-based bank equaled $4.20 per share, and compared with a profit of $2.34 billion, or $1.22, a year earlier. Excluding items, the loss was $1.27 per share, compared with the average analyst estimate of $1.30, according to Reuters Estimates. "These bottom-line results are disappointing and unacceptable," Chairman Lanty Smith said in a statement....

Charlotte bracing for Wachovia job cuts06:29 PM EDT on Tuesday, July 22, 2008 By MARK BOONE / WCNC E-mail Mark: MBoone@WCNC.com CHARLOTTE, N.C. -- Mecklenburg County’s second-largest employer said Tuesday it would cut nearly 11,000 jobs as Wachovia announced a second quarter loss of $8.9 billion. The bank employs more than 20,000 people, ranking just under Carolinas Healthcare System in number of workers, according to data from the Charlotte Chamber. Many of Wachovia’s positions are expected to be trimmed from the company’s Charlotte offices, said Dr. Tony Plath, an associate professor of finance at UNC-Charlotte. “Any way you look at...

Securities regulators from several U.S. states raided the St. Louis headquarters of Wachovia Securities on Thursday as part of a broad investigation into questionable practices involving auction rate securities, Missouri officials said. Missouri Secretary of State Robin Carnahan's office said the "special inspection" at the Wachovia affiliate, the former A.G. Edwards, concerned the $330 billion auction rate securities meltdown. It said regulators were looking for information about Wachovia Securities' sales practices, internal evaluations of the auction rate securities market, and marketing strategies. A spokeswoman for Wachovia was not immediately able to comment. The bank owns 62 percent of Wachovia Securities...

SAN FRANCISCO (MarketWatch) -- Wachovia Corp. said late Tuesday it has appointed Robert Steel as the company's new Chief Executive, President and member of the board of directors, effective immediately. Steel most recently served as Under Secretary for Domestic Finance for the U.S. Department of Treasury. His appointment ends a search that began at the Charlotte-based bank in early June with the departure of former CEO Ken Thompson.

Michael Serricchio had all he had ever hoped for in a career by the summer of 2001. At 29, he was working in the pressure cooker world of securities trading, managing millions of dollars for hundreds of investors and planning to support a family on the $200,000 he was collecting in commissions. He also was a sergeant in the U.S. Air Force Reserve. (snip) But, he says, his welcome back was less than what he had hoped for. After a three-month delay, he said, Wachovia made a salary and employment offer that was so unsatisfactory it amounted to an effective...

Wall Street analysts say the ouster of Ken Thompson as Wachovia Corp. chief executive could lead to a sale of the bank, with JPMorgan Chase & Co. identified as the most likely buyer.

WASHINGTON -- Federal prosecutors are investigating Wachovia Corp. as part of a broad probe of alleged laundering of drug proceeds by Mexican and Colombian money-transfer companies, according to people familiar with the matter. Wachovia is one of several large U.S. banks that have come under scrutiny for their relationships with such companies. It is in discussions with the Justice Department about reforms in its compliance system and faces a possible deferred-prosecution agreement that would require extensive federal oversight. An official of Wachovia said it is cooperating in the probe. Wachovia, based in Charlotte, N.C., and some other U.S. banks severed...

Wachovia Bank has settled with the Office of the Comptroller of the Currency over allegations that it allowed telemarketers to take advantage of its elderly customers, agreeing to pay a total of $144 million to end the case. The bank will settle $125 million in claims, put nearly $9 million into consumer education programs and pay a fine of $10 million, yet maintains that it did no wrongdoing and the penalties will not affect its bottom line. Wachovia had a relationship with several telemarketers and payment processors who called customers, offering discounts on discounted medical plans and other services who...

Wachovia Corp. is involved in a federal investigation launched by the Department of Justice that targets money-laundering by drug organizations, according to The Wall Street Journal. The Charlotte, N.C., company is under scrutiny for its involvement with Colombian and Mexican money-changing establishments known as “casas de cambio,” located along the Mexican/U.S. border. These organizations may be used by drug cartels to launder their money. One such exchange, Casa de Cambio Puebla, a Mexican chain, was recently the subject of a court case in Miami in which $23 million in assets were seized. The money was spread out over 23 Wachovia...

The Wachovia Corporation, the country’s fourth largest bank, is raising several billion dollars from outside investors because of mounting housing losses and an ill-timed acquisition of a big California mortgage lender, people briefed on the matter said Sunday night. It is unclear whether the investment will come from the issuing of new shares of stock to the public or from private investors. Wachovia said Sunday night that it would move up the release of its first-quarter earnings to Monday from Friday, without explanation. That has led to speculation that an announcement of an investment deal could come with its earnings...

Hedge funds claim bank knew about wrongdoing Charlotte Business Journal - by Will Boye Staff writer A group of hedge funds and a state retirement system have filed suit against Wachovia Corp.'s investment-banking unit, claiming Wachovia knew a now-bankrupt beverage company was committing fraud when the bank underwrote $285 million in debt for the company in 2006. The amended complaint, filed in federal court in New York, contends Wachovia knew LeNature's Inc. was reporting sales figures that couldn't be accurate and had been unable to make interest payments on its existing loans. The bank fronted the payments for the troubled...

NEW YORK (Reuters) - Wachovia Corp (WB.N), the fourth-largest U.S. bank, is fighting a lawsuit accusing it of letting fraudulent telemarketers use its accounts to bilk millions of dollars from consumers, court papers show. Documents filed last month in the U.S. District Court in Philadelphia, also reported in the February 6 edition of The New York Times, detail accusations the bank and its lawyers knew about the fraud allegations for years.

It’s one thing to bounce a check and it’s another to be so far in the red Bill Gates, Warren Buffet and Donald Trump combined couldn’t come close to bailing you out. A Cobb County man got a letter from his bank with that very shocking news.

CONFESSION IN SLAYINGS Warrant for car leads to suspect By DAVID GAMBACORTA, DANA DiFILIPPO & JENNA OSKOWITZ gambacd@phillynews.com 215-854-5994 A fugitive who previously served federal prison time for bank robberies confessed last night to slaying two retired Philly cops. The stunning development came just a day after William Widmaier and Joseph Alullo - lifelong friends who found a second career as armored truck guards - were gunned down and robbed as they serviced an ATM in Northeast Philadelphia. The alleged confessed killer, according to police sources, has been identified as Mustafa Ali. He was arrested on an outstanding warrant from...

News Releases May 15, 2007ICE uncovers metropolitan area credit card fraud schemeTwo arrested for allegedly embezzling $6 million from major banks including Bank of America, Citigroup, Wachovia NEWARK, N.J. — U.S. Immigration and Customs Enforcement (ICE) agents today announced the arrests of two men for allegedly masterminding a significant credit card fraud scheme that resulted in the loss of over $6 million to credit card lenders and banks nationwide. On May 11, special agents from ICE’s Office of Investigations in Newark, N.J., arrested Akbar Wrind, a 54-year-old resident of Bayonne, N.J., and Rafael Marte, a 47-year-old resident of Walnut Port,...

Wachovia bank considers NKorea cash transfer Thu May 17, 3:51 PM ET The US-based Wachovia bank said Thursday it was considering a State Department request to oversee the transfer of frozen funds back to North Korea. The move, if approved, could resolve a long-running financial dispute over 25 million dollars in reportedly tainted funds frozen in an Asian bank that has blocked progress on North Korea's pledge to start shutting down its nuclear program. "Because of our international expertise, we have been asked, on a non-profit basis, by the US State Department to help them process an interbank transfer of...

NEW YORK (Reuters) - Wachovia Corp. (NYSE:WB - News) on Wednesday said it plans to shut about 200 branches nationwide by the end of 2008 as it focuses on aggressive expansion in California, Texas and the U.S. southwest. The No. 4 U.S. bank, which operates 3,400 branches, joins rivals such as Washington Mutual Inc. (NYSE:WM - News) that are closing branches to focus on faster-growing markets and businesses. Charlotte, North Carolina-based Wachovia expects to open 100 to 130 branches in 2007, but few in the eastern part of the country, including New York. It expects next year to open 25...

OAKLAND, Calif., Nov. 3 (UPI) -- The chairwoman of the African People Solidarity Committee says white residents of the United States should support reparations for African-Americans. Penny Hess spoke to a reporter with the Oakland (Calif.) Tribune Friday on the eve of African People Solidarity Day. The activist is one of nine speakers at a Nov. 4-5 reparations event in Oakland and San Francisco. "The wealth of the West is built on slavery of African people," said Hess. "White people need to recognize it and support (reparations)." The committee was formed by mostly white members in 1976. Besides reparations, efforts...

SAN FRANCISCO - Banks, clothing manufacturers and insurance companies will have to disclose any past connections to the slave trade if they want to do business with the city of San Francisco.The Board of Supervisors unanimously approved a slavery era disclosure ordinance Tuesday that gives city contractors nine months to prove under oath that they searched for historical documents that would show ties to the slave trade and the results of that search.“It’s important that this country and San Francisco apologize and are aware of the slavery. We cannot just let it go and assume it didn’t happen,” said Supervisor...

On CBS News tonight, I saw a report on Wachovia Bank being used by Hezbollah to accept donations to fund Hezbollah. The good news is that Wachovia immediately shut down their association with the African Banks receiving those deposits. My question is: "Where is the follow-up in-depth coverage on the CBS web-site?" Also-feeling like I am in some alernative universe, the CBS news mentioned a law suit against the "non-OPEC" countries that were influenced by OPEC when gas fell below $1.00 per gallon after 9/11. I'm not seeing the follow-up on their web site. Did anyone else see this?

DURHAM, N.C.—One of three Duke University lacrosse players charged with rape wants the case resolved in time for the next school year, his lawyer said in court yesterday. But the judge warned he will not fast-track the proceedings. The case "is not going to jump ahead of the line and be handled any differently," Superior Court Judge Ronald L. Stephens said at a hearing for sophomore Reade Seligmann. After the brief hearing, District Attorney Mike Nifong said he does not expect any trial to begin before next year.

Reason Foundation    free minds and free markets The New York Times terms it "odd." Other accounts deem it "unusual." The Volkoh Conspiracy blog wonders if Atlas is, in fact, shrugging. However, the announcement that BB&T, the nation's ninth largest bank holding company, will not participate in private economic development projects that involve eminent domain action should not shock. The decision is consistent with the corporation's values, harnesses widespread public unease with the Kelo eminent domain ruling, and is another manifestation of symbol-laden stakeholder capitalism. The reporting and commentary on the bank's policy has been so confused that the Atlas Shrugged...

Twins' mom: 'He loved them, they loved him'TOMMY TOMLINSONttomlinson@charlotteobserver.comKim Crespi called Thursday morning. She wanted to talk. She spoke from California, where she was making arrangements to bury her twins today. Tessara and Samantha, 5 years old, were stabbed to death last Friday at their home in southeast Mecklenburg. David Crespi -- Kim's husband, the girls' father -- is charged with murder. Kim Crespi said she doesn't know why her husband would have killed the girls, or what could have triggered the attack. But she said she believes, based on what police told her after interviewing her husband, that he...

MATTHEWS, N.C. -- Two twin girls were stabbed to death Friday at their home on Creek Pointe Drive, police said. The father of the 5-year-olds, David Lauren Crespi, [has been charged with murdering them. Medic reported that Crespi, 45, called 911 at 12:45 p.m., saying he fatally stabbed his daughters. He also threatened to kill himself, Medic said. When police arrived at the scene, Crespi was waiting for them outside the home. The children were inside, and there was nothing paramedics could do to save them. Officials couldn’t come up with an immediate explanation. “We’re not anywhere where we can...

Posted on Fri, Jan. 20, 2006 2 children dead at S.E. Mecklenburg homeSTEVE LYTTLEslyttle@charlotteobserver.com Five-year-old twin girls were found dead Friday afternoon at a home in southeast Mecklenburg County, and police say they are questioning a suspect in connection with the case.The children's mother and older siblings are in seclusion while police continue their investigation.WCNC-TV, the Observer's news partner, reports a man called 911 early Friday afternoon and said he had stabbed his two children.Charlotte-Mecklenburg Police spokesman Keith Bridges would not confirm if the children's father was the suspect being held. He also would not comment on the cause...

For years now Richard Daley, Mayor of Chicago has enjoyed a growing reputation among the political Leftists in this country. He has been one of the leading local and national proponents of "victim disarmament" (he calls it gun control). Daley's rationale seems to be that if only the honest people would all just turn in their firearms then the gangbangers would not have to worry about shooting them when they committed robbery or mayhem because they would all know that none of the honest people had anything left to defened themselves with. Cuts down on the murder rate, you know....

President Bush's administration has threatened to sue Southern Illinois University, alleging its fellowship programs for minority and female students violate federal civil rights laws by discriminating against whites, men and others. In a move Sen. Barack Obama (D-Ill.) said "just doesn't make sense," the U.S. Justice Department charged that three SIU programs that aim to increase minority enrollment in graduate school exclude whites, other minorities and males, in violation of Title VII of the federal Civil Rights Act. "The University has engaged in a pattern or practice of intentional discrimination against whites, non-preferred minorities and males,'' says a Justice Department...

WASHINGTON - When it comes to multitasking, it's hard to beat the woman who can rob a bank and never interrupt her cell phone conversation. In an act of either incredible cool or something much more sinister, a young woman has robbed four Wachovia bank branches in Northern Virginia in recent weeks, all while seemingly immersed in cell phone chats, police say. In the most recent holdup, on Nov. 4 in Ashburn, video footage shows the woman to be almost uninterested as a teller hands her a stack of cash, and she continues talking on her phone as she turns...

WASHINGTON, Oct. 14, 2005 – Representatives of the nation's top organizations in supporting their Reserve and National Guard employees are here today to meet President Bush and Defense Secretary Donald H. Rumsfeld and to receive the 2005 Secretary of Defense Freedom Award. The award, to be presented here during an Oct. 15 ceremony, publicly recognizes employers for exceptional support above what the law requires. The Freedom Award is the highest in a series of Defense Department employer awards that include the Patriot Award, the Employer Support of the Guard and Reserve Above and Beyond Award, and the Pro Patria Award....

On Sunday morning, approximately 70 people met in Elmwood Park to be part of the first gay pride march in Roanoke. By Courtney Cutright 981-3340 The Roanoke Times In 1990, Sam Garrison, a Roanoke lawyer and gay rights activist, helped organize the first Pride in the Park event, a picnic coordinated by about a dozen people, a low-key event. Now 16 years later, the colorful gay and lesbian festival has grown to attract a crowd of approximately 2,500 people, event director Charles Richards said. On Sunday, men and women of all ages, families, children and dogs congregated in Elmwood Park...