Surprise! Wells Fargo is buying Wachovia, even though Citibank said at the beginning of the week that it was going to. (Check out the full post here.) Unlike Citibank, Wells Fargo will absorb all parts of Wachovia, including its securities and retail brokerage biz, in a “$15.1 billion all-stock merger.” [DealBook] (Thanks to Stephen!)
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And this is why, government officials, there is ABSOLUTELY no need for a Wall Street bailout. The market is reacting exactly as it should be, banks are going under, and the smarter banks are gobbling it up the dead remains.
This is how capitalism works, dont fuck it up by getting involved.
@OletheaEurystheus: The problem with this thinking is that the deal may have arisen in some part by a bet that the bailout would pass. Wells would then be able to offload the bad paper to the Feds, thus enhancing their position. If the bailout was off the table, this deal may not have happened.
@OletheaEurystheus: Help me understand what this has to do with releasing capital into the credit markets.
You know how else capitalism works? Look at the 52-week low for WB. Look at where it is now.
Craaaaaazy.
@bostonhockey: i looked at WB when it was trading for a penny.
i ALMOST bought $100 of WB
i’m SO mad at myself now…
Everybody together now: “Oh the Wells Fargo wagon is a’comin down the street/ I wish it would be for me!”
@skc15: “It could be something for someone who is not relation, But it could be something special just for me.”
I pity the Wachovia customers if Wells Fargo brings their brand of (and I use the term VERY loosely) “customer service” to them. Wells Fargo was my first bank and thanks to their mismanagement of my accounts made me a credit union customer for life!
@spinch: Or alternatively Wells Fargo might keep Wachovia’s pretty good customer service and get rid of their old one?
I’m opening a bank account with any remaining and still-open bank on earth. I will *NOT* go back to Wells Fargo.
I’d really wish people would get off their “bailout” high horse. I’ll be more than happy to buy your 401K @ $0.20 on the dollar any day. No one on wall street is gonna get rich selling assets at a massive loss. Hell we get lucky and we might make a profit off those fat cats, wouldn’t that be sweet revenge?
@full.tang.halo: very wishful thinking. Those arguments are similar to ones made 20 years ago during the S&L crisis, and in the end Americans suffered and one of the chief politicians involved in that clusterfuck is on his way to a possible presidency
@OletheaEurystheus: I don’t think we have to worry about McCain reaching the White House now. Looks like its pretty much all over.
all of these takeovers were planned and orchestrated months ago. the us taxpayer are seen as sheep to be led. there is widespread corruption.
doesn’t anyone find it strange that American’s bank deposits are becoming more and more concentrated in the hands of just four banks: bank of america, jp morgan chase, citigroup and wells fargo? doesn’t it seem coincidental that BACK IN JULY (before the proverbial s*it hit the fan and BEFORE this bailout was announced) Secretary Paulson had a meeting with:
chairman of the FDIC
chairman of the Fed
OCC Comptroller
OTS Head
AND “coincidentally” reps from the following banks:
Bank of America
JP Morgan Chase
Citigroup
Wells Fargo
Public information dears, but amazingly happened very quietly.
[www.cfo.com]
@noscamsplease:
Also, The government took out the WTC with a missile. It’s true. Read about it on the world wide web.
@GreatCaesarsGhost: methinks i hear baaa-ing in the background.
@GreatCaesarsGhost: Don’t forget that the Navy shot down that TWA plane too.
@noscamsplease: Well, if you’re worried, move your deposits to TD or another foreign bank or something. Since I happen to be living in China for the long term, I’m putting some money here. Say what you will about this place, but at least the banks will stay around.
Okay, I don’t really follow what bank owns what smaller bank, and I often read complaints here about customer service from nearly every bank…but I never seen any mention of Commerce Bank. I almost always get great service there…it is just that they are a much smaller bank than these other guys?
Well, now Wells Fargo can drag down the quality of another bank. On the one hand, it’s good the FDIC doesn’t have to get involved and another company has been saved from the clutches of Citigroup. On the other, it had to be Wells Fargo…
@NefariousNewt: Well, who else could take on such a large failing bank? Maybe a foreign one, but that would be all kinds of bureaucratic fun…
So they’re buying all parts of Wachovia? Does that include the Wachovia Center in Philly? Will it now be the Wells Fargo Center? Anyone remember back when it was the Core States Center? Ah, how times change.
@ryaninc: I lived up in Northeastern PA when the much-smaller First Union Arena became the Wachovia Arena.
The biggest drawback is that we were no longer able to call it the “F. U. Arena.”
Ugh. I was OK with switching to Citibank. Now not so much.
at this point, we should be happy that WB is being bought by a STABLE bank, without failing. This is very good news. I’m willing to give points to any bank that is able to survive this current nastiness.
That was one heck of a head fake…