At least good news for taxpayers… CitiGroup has backed out of talks for Wachovia leaving the entire deal for Wells Fargo. I’m guessing that after more of the depth of bad debt came to light, it became more and more obvious that the deal just was not longer going to be in the best interest of CitiGroup’s stockholders.
That was the good news, as long as Wells Fargo can consumate the deal without government assistance. CitiGroup apparently still plans to pursue legal remedies against Wells and Wachovia.
In the bad news column, today was day seven of overall down market results. Some analysts are starting to say what I’ve been saying for some time now: government can’t fix this, and having the government try to fix it is just making investors more nervous.
Let’s just do what we should have done the whole time… let the market adjust itself.
