Citigroup sues Wachovia, Wells Fargo ...

Citigroup sues Wachovia, Wells Fargo for $60B

There are 17 comments on the TwinCities.com story from Oct 6, 2008, titled Citigroup sues Wachovia, Wells Fargo for $60B. In it, TwinCities.com reports that:

Citigroup Inc. said today it has filed a complaint in New York Supreme Court against Wachovia, Wells Fargo and the directors of both companies seeking more than $60 billion in damages for interfering with the ...

Join the discussion below, or Read more at TwinCities.com.

Tybalt

Capron, IL

#1 Oct 6, 2008
My opinion, you ask? citigroup can shove it, that's what i think.
Me and me

New York, NY

#2 Oct 6, 2008
Tybalt wrote:
My opinion, you ask? citigroup can shove it, that's what i think.
who asked?
Bo Vine

Eden Prairie, MN

#3 Oct 6, 2008
The bigger issue here is: if Wachovia is so valuable why is there a need for a government intervetion in the negotiation with Citi?

Also, how much of the $700B bailout will be used to pay off this $60B lawsuit?

mooo eat moor chikin
schmuck

Minneapolis, MN

#4 Oct 6, 2008
I agree with Tybalt, talk about loan sharks, they are it. Been watching their stock, not doing well either. I bet they needed Wachovia's deposits to keep themselves floating. Next thing we will hear is about a bailout for them.
Red Ryder

Monroe, LA

#5 Oct 6, 2008
Kashkari to be tapped to head bailout

http://news.yahoo.com/s/ap/20081006/ap_on_bi_...



An official says the administration has decided to pick a key Treasury Department official to be the interim head of its $700 billion rescue effort for financial institutions.

The official said Monday that Neel Kashkari, Treasury's assistant secretary for international affairs, will soon be announced as the interim head of Treasury's new Office of Financial Stability. The official asked not to be identified by name because the selection has not been announced publicly.

more at news.yahoo.com ...

----------



Neel Kashkari???

Is that like Cash and Carry? Lucky the person named wasnÂ’t Helena Handbasket. I suppose its better than Mel Down.

Now we just need a VP from Lehman Brothers or Bear Stearns
Dan

Saint Paul, MN

#6 Oct 6, 2008
Lets see. Citi is suing for $60B for losing its sweetheart deal to buy most of Wachovia for about $2B with a government backstop on its losses. Only in America.

I'm sure the Wachovia shareholders (including the holders of lots of peoples' 401(k)s and pension plans) would rather not sell to Citi for $2B which was forced down their throats, but would rather sell to Wells Fargo for $15B.
citi done

Ypsilanti, MI

#7 Oct 6, 2008
nobody want to deal with citi anymore.. citi is bad bad
dumbfounded

Saint Paul, MN

#8 Oct 6, 2008
Dan wrote:
Lets see. Citi is suing for $60B for losing its sweetheart deal to buy most of Wachovia for about $2B with a government backstop on its losses. Only in America.
I'm sure the Wachovia shareholders (including the holders of lots of peoples' 401(k)s and pension plans) would rather not sell to Citi for $2B which was forced down their throats, but would rather sell to Wells Fargo for $15B.
you're right, sound like a smart business plan to go for the $15B instead of the $2B. Seems like a no brainer in this capital driven society we have. If you're selling your car and one guy offers $1,000 adn another offer $1,500 what ya gonna do?
I thought something was fishy when Citi could get Wachovia for such a little Ammount.
Sideshow Bob

Minneapolis, MN

#9 Oct 6, 2008
Me and me wrote:
<quoted text>who asked?
Citigroup employee I take it, dallas branch?
The Talented Mr HR

Nottingham, MD

#10 Oct 6, 2008
If Citi got a sweetheart deal hours before Wachovia's bankruptcy on Monday, why was there not a line at the door in the weekend auction?

Why did Wells back away from a Wachovia deal for $20B before the Fed asked Citi to step in?

Why should Citi take on more exposure to the Wachovia's CDOs without some protection?

Enough of this nonsense about Steele and the Board protecting shareholders. They protected themselves. The Citi deal voided their golden parachutes valued at $220M. The Wells deal includes the $220M severance package. The stock price matters very little - being sold lock/stock mattered because it was their money. Wells saved $5B, Steele-Board saved $220M.

Citi will win, as the Fed is backing them on the deal. Watch Wachovia be broken up into 2 pieces, of which both won't total $15B now.

You poor employees at Wachovia - you deserved much better.
Wondering

Baltimore, MD

#12 Oct 6, 2008
Smart Talented Mr. HR :-)
CKinDelaware

Johnstown, PA

#13 Oct 7, 2008
Bo Vine wrote:
The bigger issue here is: if Wachovia is so valuable why is there a need for a government intervetion in the negotiation with Citi?
Also, how much of the $700B bailout will be used to pay off this $60B lawsuit?
mooo eat moor chikin
Why didn't Citigroup fold instead of Lehman? A debt of mine was forgiven by Citigroup yet a collection agency called Capital Management called me last night; was not willing to work with me so I sent them a certified letter telling them to stop calling me along with a copy of my tax return saying the debt has been cancelled. Maybe they'll believe me this time around and stop being so stupid.
The Talented Mr HR

Nottingham, MD

#14 Oct 7, 2008
Citi's exposure to the swaps was less than Lehman's, and it is a global company with a different risk model. It's shored up its leverage ration with an infusion of foreign capital, cut it's dividend, and has wrote off $40B in the last year.

Sorry that you have collectors still calling, but once the account is being managed it might take a letter like you sent to have collectors desist. I hope your arrangement with Citi gives you the relief you need on the road to financial strength one day.

“m”

Since: Sep 08

here

#16 Oct 7, 2008
in a by out does not the highest bidder win.
how doe citi rate here its kinda like two kids fighting over a toy and using the line i saw it first.
hmmmm

Vancouver, WA

#17 Oct 7, 2008
Tybalt wrote:
OK Mr HR - is Wells Fargo solid?
Wells Fargo is solid yes, it is rated the safest bank in the united states, Wells Fargo is very conservative on their business deals and did not jump on the option arm band wagon, which is why they did not feel the hurt with the mortgage crisis. I think that I have not heard or read a single negative thing about Wells Fargo. Other than taking Citis deal that is, but hey it is what is best for the shareholders so I think Citi should take a walk.
GIVE ME A BREAK

Tazewell, VA

#18 Oct 8, 2008
HMMMM,
Apparently you have not spoke with their auto division employees. Many who got the jack last Wed. and were on pips with a non competitve program. It is obvious you are on the stagecoach..so to speak.
hmmmm

Vancouver, WA

#19 Oct 8, 2008
GIVE ME A BREAK wrote:
HMMMM,
Apparently you have not spoke with their auto division employees. Many who got the jack last Wed. and were on pips with a non competitve program. It is obvious you are on the stagecoach..so to speak.
It is fine with me that I am on "the stagecoach" so to speak, I know what is going on. I wouldnt talk so highly about a place unless I knew for a fact that they were a good company. As far as the auto division employees there is different entities of Wells Fargo so if it was Wells Fargo Acceptance Auto department I wouldnt have heard. I am speaking of general retail operations which drives the core of banking.

Tell me when this thread is updated:

Subscribe Now Add to my Tracker

Add your comments below

Characters left: 4000

Please note by submitting this form you acknowledge that you have read the Terms of Service and the comment you are posting is in compliance with such terms. Be polite. Inappropriate posts may be removed by the moderator. Send us your feedback.

Deposit Discussions

Title Updated Last By Comments
News Delaware Inn destroyed by blaze (Feb '08) Sat Olga K 23
Craig shermans wife Aug '16 Erleine 1
News Joseph Smith's Arrest Records Found (Jun '08) Aug '16 Clive 44
News Know how to determine if your bank is in trouble (Oct '08) Apr '16 Lori 2
Melissa Stever where are you Apr '16 hustlerMan 1
News Qualfon to Build Contact Center and Back-Office... (Jan '14) Jan '14 SAL THE TURK 1
Election Who do you support for U.S. House in New York (... (Oct '10) Jun '13 Deborah 200

Deposit Jobs

More from around the web

Personal Finance

Deposit Mortgages