Wachovia, Citigroup, Wells Fargo extend legal standstill agreem...

After the battle for Wachovia moved to both state and federal court over the weekend, the parties had agreed to a cease-fire at the urging of Federal Reserve officials. Full Story
Joe Thompson

Williamstown, NJ

#1 Oct 8, 2008
The federal government bailed out AIG for 85 billion dollars. Two weeks later the top level executives throw a week long golf outing for 500 million. Anything wrong here?

Since: Mar 07

Allentown, PA

#2 Oct 8, 2008
Joe Thompson wrote:
The federal government bailed out AIG for 85 billion dollars. Two weeks later the top level executives throw a week long golf outing for 500 million. Anything wrong here?

That's business as usual, Joe.

What kills me about this, is the pair of balls that Citi has, to demand a $2B deal with Federal help, against the huge bid by Fargo on its' own.

If Citi has any sense of decency (not to mention Public Relations), they'll make a good-faith match or get off the pot.
Bar_keep

Reading, PA

#3 Oct 8, 2008
Dennis Mac wrote:
<quoted text>
That's business as usual, Joe.
What kills me about this, is the pair of balls that Citi has, to demand a $2B deal with Federal help, against the huge bid by Fargo on its' own.
If Citi has any sense of decency (not to mention Public Relations), they'll make a good-faith match or get off the pot.
Since the money that Citi is talking about is public money, the feds should yank their money back and tell Citi...too bad. Wells Fargo has their own money to use. Why should we finance a cheaper offer of our own money...with our own money? Its like buying my own car...at a cheap price...using my own money when my neighbor is willing to triple the price with his money.
Bar_keep

Reading, PA

#4 Oct 8, 2008
Additionally...I just love it when these guys all run to court when they've been spurned in a business deal. Tell me...can the public run to court because we've been fleeced out of billions of dollars when these corp. execs gave and took millions? Should we, the public, drag their azzzes through the legal ringer? It would be nice. But we can't. The politicians are all in on their deals. When the noise blows over it will all go away...Mr. corp. exec gets his $20M parachute back in place, and Mr. politician gets his $20K donation and other greasy perks. The public? We get the shaft.

Since: Mar 07

Allentown, PA

#5 Oct 8, 2008
Bar_keep wrote:
<quoted text>
Since the money that Citi is talking about is public money, the feds should yank their money back and tell Citi...too bad. Wells Fargo has their own money to use. Why should we finance a cheaper offer of our own money...with our own money? Its like buying my own car...at a cheap price...using my own money when my neighbor is willing to triple the price with his money.

And that's exactly why I can't understand why the Fed is standing-by Citi on this!

In addition to this "aid", Citi will get a massive write-off -- aka "double-dipping" of our tax money.

Our Congress had better get this to the top of their pile, and deal with it in a way that preserves the money for where it's really needed.
No Citi

Allentown, PA

#6 Oct 8, 2008
I've got my transfer papers all filled out to get out of my Wachovia accounts if Citi takes over local branches. Terrible retial customer service! Been there, done that, noever again.

Since: Mar 07

Allentown, PA

#7 Oct 8, 2008
No Citi wrote:
I've got my transfer papers all filled out to get out of my Wachovia accounts if Citi takes over local branches. Terrible retial customer service! Been there, done that, noever again.

I used to work for Citi, in an operations center in NY.

You're absolutely correct.

I would welcome Wells-Fargo with open arms, but Citi could go stick it!
Morto

Portland, CT

#8 Oct 8, 2008
No Citi wrote:
I've got my transfer papers all filled out to get out of my Wachovia accounts if Citi takes over local branches. Terrible retial customer service! Been there, done that, noever again.
You are lucky to be able to get out, if one has CD's in there you have to take a penalty to get them out. I would rather not do business with Citi either.
BigTricky

Hollywood, FL

#9 Oct 8, 2008
obviously the comments on this issue is a result of the over exhaggerate media exposure. Friday evening, Wachovia CEO contacted Citi's CEO with a concern on his bank. Feb regulators where scheduled to take over Wachovia Monday morning if no deal was finalized. Cit and Wells where at the bidding table, Wells backed off of the deal and Citi came through with an offer approved and accepted by Wachovia and the FDIC. The deal was done. Citi provided liquidity for a week to Wachovia. Tuesday, the IRS announced a change in tax law allowing for banks to write off bad debt, then Wells and Wachovia began secretly to make a deal. I repeat, Citi provided liquidity to Wachovia for a week to keep them afloat. Citi had an executed agreement with a non-compete clause. But Wells and Wachovia made a deal anyway and violated illegally the agreement. What will we end up in if in America a binding contract is no longer legal?? And by the way, the FDIC supports Citi's offer as the legal contract. It's like you buying a lottery ticket for $2 making $10 on it and then someone coming to say they bought your ticket for $2.50 and your not entitled to your $10. It just isnt right. Wachovia and Wells must pay for thier breach. And by the way, if Wells is allowed to do this, the regulators are concerned about the next time a bank failure occurs (and there will be more) what bank is going to want to step up to the plate and help after what was done to Citi. I know Citi wont.
Wells and Wachovia act was ileggal and thats not to talk about the character and lack of hoensty for these institutions.
Get the facts straight.
Anti Citi

Allentown, PA

#10 Oct 9, 2008
Well at this point I don't care who was right or wrong - if citi takes over they are doomed - people like me a NoCiti will all bail from their accounts
Dr Hunter S Thompson

Allentown, PA

#11 Oct 9, 2008
Big Tricky - nothing wrong with your facts, but why should taxpayers allow Chiti-bank to use federal funds? Why not require them to put up their own money, with no tax breaks. They're still expanding their operations, getting a bigger piece of the pie as it were. Why do they need taxpayers' assistance and tax breaks? Because they kept a crummy bank afloat for 5 business days?

Corporate greed is corporate greed. The FBI is finally (about 10 years too late) starting to look into this. There will be a lot of white collars in cell block C, and I for one can't wait!
Joe Thompson

Williamstown, NJ

#12 Oct 9, 2008
Dr Hunter S Thompson wrote:
Big Tricky - nothing wrong with your facts, but why should taxpayers allow Chiti-bank to use federal funds? Why not require them to put up their own money, with no tax breaks. They're still expanding their operations, getting a bigger piece of the pie as it were. Why do they need taxpayers' assistance and tax breaks? Because they kept a crummy bank afloat for 5 business days?
Corporate greed is corporate greed. The FBI is finally (about 10 years too late) starting to look into this. There will be a lot of white collars in cell block C, and I for one can't wait!
This is exactly the point, these failed CEO's should be lined up and given lengthy prison sentences. Instead they get golden parachutes for failing. What's the lesson?
Fahrenheit 451

Allentown, PA

#13 Oct 9, 2008
...and what was the form of this mysterous contract? Letter of Intent? What? The Wachovia stockholders and the US taxpayer should rightly be incensed by Citi's pig-like behaviour. They're after one thing....a fat settlement check. Wake up FDIC! It's not up to you to inforce ANY so-called agreement, regardless of form.

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