After a weekend of back and forth, one judge's order to stop Wells and Wachovia from proceeding on Saturday, and appellate court overturning that order on Sunday, and a $60 Million CitiGroup (C) suit against both Wells Fargo (WFC) and Wachovia (WB), the three parties have agreed to a temporary halt to all litigation and discovery until Wednesday at noon.
Which just demonstrates the fallout that can be expected as the government (in this case, the FDIC) strong-arms companies to act, no matter how imprudently, to prevent the government from stepping in and (in this case) taking yet another bank into receivership.
It probably comes as no big surprise that Wells Fargo (WFC), one of the largest banking concerns in the US, well diversified in financial products across deposits, lending, credit cards, sales finance, and a smart mortgage originator, announced Friday that they had made a deal to purchase the entire Wachovia package for $15.4 Billion. The surprise comes with the fact it was five days late. The deal undercuts CitiGroup's (C) announced purchased of part of the Wachovia (WB) operation, and does what CitiGroup could not do: completes the deal without Federal Funding.
I was shocked when I heard, since Wells had originally participated in negotiations last weekend along with CitiGroup. Wells evidently was able to use the week, in which a contract had not yet been signed, to perform additional due diligence, and came up with an offer Thursday evening.
Talking Heads: No visible means of support and you have not seen nuthin yet ~ ~ ~ ~ ~ The House of Representatives today passed the Senate version of the $700 Billion Bail-out. For now, it’s over. Bush signed the bill shortly after the vote, and we have not...
In case you missed tonight’s debate, video courtesy of C-SPAN. Hat tip to fellow Swamp Stomper Sister Toldjah. Follow our comments in the Live Blog of the debate.
We’ll be starting right at 9:00 PM Eastern. We look forward to your participation! I’m going to have to switch to using the comments section. I don’t know what the issue is but CoveritLive is apparently having issues tonight. Please feel free to...