Citi in Talks With Wachovia as $700B Bailout Plan Moves Forward 33 comments
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CNBC is reporting that merger talks between Citigroup (C) and Wachovia (WB) have advanced, with a meeting scheduled Sunday for Citi executives. The major deciding factor is the status of $120B in bad debts for Wachovia, with Citi looking for help from the Fed as part of the bailout plan to sell the troubled assets. Wachovia has $400B in deposits, making it the sixth largest bank in the U.S. by assets with a strong presence in the East and Southeast regions.
Meanwhile, a tentative agreement has been reached for a $700B government fund to purchase bad debts from banks to free up the credit markets and allow banks to begin lending again. The bailout plan would make $250B available immediately upon enactment of the legislation with another $100B available at the discretion of the President. The final $250B will be subject to review by Congress.
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This article has 33 comments:
Where is the other $100B going? These politicians don't think we won't notice that, do they?
bullish on wachovia
i would say 15 is the right number, though based on book value, we can see citi buy WB for 1 share of Cit fpr each share of Wb. Good luck if you some. i averaged 500 at 12.5.
yes it can if the fed force wb to accept a deal with citi. the sharholder will be left with nothing. bond holders and preferred stock holders have priority over common stocks. i bought some put option to protect against such a move. hope you did too.
Go home. Put your money in anything but Banks and Wall Street.
Haven't you had your asses kicked enough ?
Buy them my fellow citizens.. it's un-American not to AND what is really great is that you'll make money !!!
HA! any takers ???
If we put 700 billion unsecured dollars
back into Wall Street and
let Morgan Stanley sell us back the same horse crap
everything will be just wonderful !
Where do I sign up.
NOT FAIR !!!
I want to pay 900% more than its worth...I demand it...
Bank executive pay requirement.
He has every penny he owns in the bank and he owns no stock in it.
In fact he can not own ANY bank stock ANYWHERE.
Done.. No more people risking your money !!
No more Republican Party, brought down by bad credit.
I say if the bank executive doesn't deliver he has to give all his organs out to the needy due to his unforeseen demise.
Or send him to China..my treat !
I think the DOW will be at fair value at about 5000.
Now that's a bargain main street can live with.
News flash. WB trading on Bloomberg..$.25...It's really trading in his ass with the hamster as the broker. You'll need a cardboard tube to place the 'at market' buy.
789,342,434,901,345,67...
I can't wait to get my share. I figure every man, woman, child, dog, cat, and hamster should have in their portfolio about: 12,630,887,455,233
shares @23. WE are all rich RICH RIIIIIICH.
Henry Paulson has 4.58 million shares of GS.
Lost quite a bit today.
Beavis says heh heh heh..heh heh
Why are we listening to him ( Paulson ) ?
Text of the bailout plan (from the NY Times):
graphics8.nytimes.com/...
Sec 109c line 14 "principal write downs" of mortgages
Sec 110-2 Modifications (to mortgages)
(a) Reduction in interest rates
(b) Reduction in loan principal
Now think about this example:
There are two neighboring houses.
In the first house, Peter was prudent, saved his money, lived within his means, worked hard, and could afford his mortgage.
In the second house, Paul took on too much debt, lived beyond his means (possibly even taking out a HELOC or two to "live the good life"), worked just enough, and frankly cannot afford the mortgage he got himself into.
The aforementioned sections essentially say that the tax money that Peter has paid will go to help his neighbor Paul. Truly robbing Peter to pay Paul's mortgage!!
On top of that, everyone else who knew they couldn't afford a house and thus are renting... their tax money goes to help Paul too!!
That is f***ing ridiculous.
Sec 113a1. "Minimizing negative impact" -- This section is pure fluff but does clearly say there *will* be a negative impact, which they will attempt to minimize (ya right). None of "the gov't might actually make a profit" absurd punditry.
Here is a graphic showing who in the House voted for or against this absurd, Socialist bill:
www.nytimes.com/ref/wa...
I will vote for, and contribute to, the incumbent campaigns of those who voted against this bill.
I will vote against, and contribute to, the challenger campaigns of those who voted for this bill.
As a taxpayer, one who lives well below his means, and an American, I am utterly furious that House Speaker Nancy Pelosi, D-Calif., Senate Majority Leader Harry Reid, D-Nev., Paulson and House Republican Whip Ray Blunt, R-Mo could come up with this absolute garbage.
Moreover, the fact that Henry J Paulson originally asked for $700,000,000,000 without any oversight at all, just a "trust me, I'll spend it right" attitude, is completely un-American and goes against our democratic system of checks-and-balances. He is a snake, a complete failure at his duties, and should resign immediately.
I implore all of you:
PLEASE send emails, write letters and tell your Senator and Representatives that you-- as a financially responsible homeowner-- REFUSE to help pay the mortgages of your financially irresponsible neighbors. They don't need to be very long-- just a paragraph or two to get to the point.
Tell them you will send money to support the challengers to kick out the incumbents to voted for this bill.
And tell those Representatives who voted against this bill that you wholeheartedly support their vote, and will be contributing to their campaigns.
They need to know: Vote for this bill and they will be out of office.
Watch the crap fly with the new bank called Fed-Wacho-Citi-Wells.
What a bunch of light weight thinkers we have running the country.
I'd like to know who is going to audit federally backed and owned companies ? Not the IRS..same guys. Hey but guess what..If the IRS
does get to do the Audit, any money they fine AIG goes to the same people anyways.
Probably Goldman-Buffet will do the taxes ! They will give you a straight answer every time.
We, the people who actually pay their mortgages, bills, taxes, etc., and do not need credit lines to make payroll, have to bail out the scum who sold these mortgages and the idiots who can't manage their finances and READ fine print.
What a great plan !!! Givim all we got boys.. 50 trillion and beyond.
I see BIG profits ahead for us.
After everybody and their dad just told us that there is toxic waste in the market...They say buy it at cost and sell it at a profit.
So the plan is to sell the crap back to the people who bought it already and make a profit on them.
Now that's a derivative I can salute. That puts new meaning to toxic Wall Street paper.
You guys at Goldman-Buffet are just pure genius.
but you couldn't have done it without the generous help from the FDIC and Paulson
Let the market crash. Do not live in Wall Street's worthlessly valuated markets. Why not just get it over with and enjoy lower taxes, houses, gas, EVERYTHING.
Didn't you watch Oil, corn, wheat, soybeans flop nicely because speculators didn't have credit.
I prefer a real world. NOT one puffed up with a bunch of paper and
lies.