Just went long. following Ackman's tip here. if C gets the deal the stock is worth a TON because of tax assets(they could actually get refunds) that they have on their books(plus the brokerage business). If WFC gets the deal you just breakeven/lose little/make little and get WFC stock. This is not the type of situation where shareholders get punished, its the type that they get rewarded for whining and bitching!(like on BSC). The only real risk that I can think of is a lawsuit that leads to a multibillion settlement, but maybe the authorities wont allow that
Well, they are on the case "Wachovia, Citi, Wells Fargo agree to standstill of lawsuits (WB, C, WFC) by Sue Chang SAN FRANCISCO (MarketWatch) -- Wachovia (WB), Citigroup (C) and Wells Fargo (WFC), in consultation with the Federal Reserve, have agreed to a standstill of all litigation activities, effective immediately, Wachovia and Citigroup said Monday. The parties also agreed to cease formal discovery activities, and cooperate in good faith to preserve the status quo during the litigation standstill period. The standstill agreement will end at noon on Wednesday unless it is extended. Citigroup said earlier it filed a complaint against Wachovia and Wells Fargo seeking more than $60 billion in damages."
out at a 7% loss. pretty much got the worse case scenario. C didnt got the deal, the market crashed and the rally after it didnt follow through. at least I didnt panic with everybody, this trade was showing a ridiculous loss and wb was trading at $3.x and I had to hang in there