Goodbye Citigroup, Hello Wells Fargo?
Well, well. Just a few days ago, it was announced that Citigroup was going to buy my bank, Wachovia. Now, however, it looks like , not Citigroup.
As a customer, the following quote from Yahoo Finance makes me feel a little better about the new deal -
While Wells Fargo has logged three straight quarters of profit declines, the bank has been weathering one of the nation’s worst credit crises much better than most of its competitors, in part because it had less exposure to the subprime mortgages whose failure undermined the financial sector. (This quote has been removed from the original Yahoo Finance article. See note at the bottom of this post.)
As a tax payer, it’s great to see that this deal will go through without government funding or FDIC funding. Again, from Yahoo Finance -
The Citigroup deal would have been done with the help of the Federal Deposit Insurance Corp., but the Wells Fargo deal for Wachovia will be done without it. (This quote has been removed from the original Yahoo Finance article. See note at the bottom of this post.)
This might not be the end of the Wachovia saga, but I feel much better than I did a few days ago.
Edit – Not one minute after I wrote this post, the information fromchanged. It looks like Citigroup is upset about this deal and is claiming that it has an exclusive agreement with Wachovia. Stay tuned.