Ok now its all clear "Wells Fargo's proposed transaction triggers severance payments that may enable Wachovia Chief Executive Officer Robert Steel and other senior executives to receive a combined $225 million, Citigroup said in the lawsuit." http://www.bloomberg.com/apps/news?pid=20601087&sid=aGFtOPHaJke8&refer=home
He may or may not get a severance payment, but Citigroup got a steal with Wachovia. They paid close to nothing for the company and had the FDIC take most of the risks. Even with the losses in there mortgage portfolio, the deposit base and branches are a gold mine for either Citigroup, since most of there branches are run down dumps, while Wells will get more coverage in the east coast that it lacks.
the private fed. reserve and Citi were trying to steal Wachovia. Just like WAMU and LEH were stolen. Now Citi is back wanting to bid higher. So what changed in 24 hours? This outright thievery of share holder value and robbing taxpayers is being done so blatantly in the open, it's amazing that only a very few have caught onto what is going on.
I stay away from gov conspirancies and things like that but I couldn't agree more. The fact that paulson and bair seem to be the most persuasive deal markers in the history of man lead me to believe that property rights in the US are taking a hit. They might take a even bigger one when they decide to capitalize banks by force. buffett and greenspan already made the point that one of the great US advantages over everybody else is property rights protection. systemic risk should be addressed by spending money not by shaking the foundation of the country
WAMU was worthless, there was a silent run on the bank. My friend tried getting some money out of the atm, and it refused.
I find the way WaMu and WFT were handled very troubling. WFT is particularly troublesome. The CEO was on TV saying everything was solid, then the next week they are forced into the arms of Citi, then they turn aorund and apparenly blatantly breach an exclusivity agreement with Citi. Now we find the CEO is lining up for an enormous severance package. Somehting stinks very badly here. The shareholders of WFT got screwed, the shareholders of Citi seem to have been screwed. No doubt the taxpayers will get screwed. Sheila Barr will probably end up as CEO of FNM and make 90 Mill.