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lakrav
LIF Infant
Member since 8/07 89 total posts
Name:
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Wachovia
OK...now that we have all helped bring down WaMu...just wondering what everyones thoughts are with Wachovia...should we shut this one down as well?
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Posted 9/29/08 8:03 AM  |
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JennZ
MY LIFE!!
Member since 8/05 25463 total posts
Name:
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Re: Wachovia
It was just on the news here (NC) that citi-group HAS bought them.
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| Posted 9/29/08 8:59 AM |
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kerrycec03
Mom of 2 beautiful boys!!
Member since 6/06 13519 total posts
Name:
Kerry
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Re: Wachovia
Posted by JennZ
It was just on the news here (NC) that citi-group HAS bought them.
yep, just heard that as well
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| Posted 9/29/08 9:06 AM |
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HoneyBadger
YourWorstNightmare.
Member since 10/06 15979 total posts
Name:
BahBahBlackJeep
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Re: Wachovia
Yeah, the NY Times just reported on it as well...
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| Posted 9/29/08 9:34 AM |
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Kara
Now Zagat Rated!
Member since 3/07 13217 total posts
Name:
They call me "Tater Salad"
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Re: Wachovia
Posted by JennZ
It was just on the news here (NC) that citi-group HAS bought them.
Not quite, they are going to buy them. The merger has not happened yet - it was just announced.
http://economictimes.indiatimes.com/Citibank_acquires_Wachovia/articleshow/3541379.cms
NEW YORK: Citigroup will acquire banking operations of Wachovia. In news just trickling in, it has been reported that Citigroup will acquire bulk of Wachovia's assets and liabilities.
The deal is supported by FDIC. Citigroup has agreed to absorb up to $42 billion in losses out of a total loan pool of $312 billion. FDIC will absorb the rest of the losses. Wachovia will continue to retain Evergreen and A G EDwards.
Citigroup has granted the FDIC 12 billion dollars in preferred stock and warrants to compensate the FDIC for bearing this risk, the FDIC said in a statement.
Wachovia's current problems stem largely from its acquisition of mortgage lender Golden West Financial Corp in 2006 for roughly $25 billion at the height of the nation's housing boom. With that purchase, Wachovia inherited a deteriorating $122 billion portfolio of Pick-A-Payment loans, Golden West's specialty, which let borrowers skip some payments
But like many other banks, Wachovia stands to benefit from the passage of the government's proposed $700 billion rescue plan - the details of which were emerging from Washington on Sunday.
This summer, Wachovia reported a $9.11 billion loss for the second quarter, announced plans to cut 11,350 jobs - mostly in its mortgage business - and slashed its dividend. Wachovia also boosted its provision for loan losses to $5.57 billion during the second quarter, up from $179 million in the year-ago period.
Earlier this month, Wachovia said it is on track to reduce securities and outstanding loans on its balance sheet by $20 billion this year, which will free up $1.5 billion in capital.
Additionally, Wachovia still expects to reduce expenses by $2 billion by the end of 2009.
However, the second-half expense benefit will be more than offset by $525 million to $650 million in severance and benefit costs related to previously announced job cuts, Wachovia said.
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| Posted 9/29/08 9:42 AM |
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ruby
you rang?
Member since 6/08 5573 total posts
Name:
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Re: Wachovia
I bank with Wachovia, I assumed they would get bought or merge with someone. I'm not worried, I've been with them for years, or should I say I've had the same account # for years and over the years so far it's been 3 different banks. Wachovia was the last, they bought out First Union. Through all the switches I've barely even noticed as far as my money is concerned.
Though I did have a Citibank cc once and I wasn't happy with them which is why I don't have it anymore. So that's kind of annoying.
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| Posted 9/29/08 9:49 AM |
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