Seeking to ease embarrassment from its failed bid, it looks to buy a regional player
Wall Street Journal Nov 10, 08 7:54 AM CST
(Newser)
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After losing Wachovia to Wells Fargo, Citigroup is again looking to buy a bank to bolster its deposit base in the face of continuing economic turmoil, reports the Wall Street Journal . The latest target is a regional bank considerably smaller than Wachovia. Citi recently drew $25 billion from the Treasury Department’s $700 billion bailout fund.
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MARKET opener
Recession fears keep bears growling
Wall Street Journal Oct 22, 08 8:51 AM CDT
(Newser)
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Recession fears kept bears roaring today, as the Dow shed 230 points at the open on a spate of lousy third-quarter results. Wachovia posted a staggering $23.9 billion loss to lead a group of five gloomy blue chip reports, the Wall Street Journal reports. “We’ve seen a range of poor results lately,” said one market watcher, “and there is no reason why this is not set to continue.”
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Writedowns lead to $11.18 per share loss; Wells Fargo says merger on track
Bloomberg Oct 22, 08 8:40 AM CDT
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Wachovia reported losses of $23.9 billion in the third quarter, a whopping hit of $11.18 per share that blew by analysts’ estimates of a 2-cent-per-share loss, reports Bloomberg. But Wachovia’s loss—virtually all tied to mortgages or mortgage-related securities—may be Wells Fargo’s gain.
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Citigroup plans to sue over breach of contract, but will not interfere
Associated Press Oct 10, 08 3:02 PM CDT
(AP)
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Federal antitrust regulators cleared Wells Fargo's $11.7 billion acquisition of Wachovia Corp. today, capping a weeklong battle for the Charlotte, NC-based bank. The rapid approval comes a day after Citigroup walked away from its acquisition effort. Citigroup plans to seek $60 billion in damages for breach of contract but has decided not to challenge the Wells Fargo-Wachovia deal in court, the AP reports.
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Wall Street Journal Oct 9, 08 5:23 PM CDT
(Newser)
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Citigroup said today it's going to let Wells Fargo go ahead with its acquisition of Wachovia, the Wall Street Journal reports. But all's not chummy in the banking world: Citigroup, which charges that Wachovia illegally backed out of a deal to accept a sweeter offer from Wells Fargo, is still going to sue for billions in damages.
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MARKETS
Dow falls below 9,000 for first time since 2003
MarketWatch Oct 9, 08 3:32 PM CDT
(Newser)
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Stocks plunged in the last hours of trading today as a number of government moves did little to shore up investors' confidence, MarketWatch reports. The Dow’s losses accelerated sharply after it dropped below the psychological threshold of 9,000 points. It closed down 678.91 at 8,579.19; the Nasdaq lost 95.21, closing at 1,645.12, and the S&P 500 fell 75.02 to 909.92.
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Fed brokers cool-off, banks may be working out carve-up deal
San Francisco Chronicle Oct 7, 08 2:47 AM CDT
(Newser)
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Citigroup and Wells Fargo have agreed to back off from their legal tug-of-war over Wachovia until tomorrow, reports the San Francisco Chronicle . The Fed-brokered agreement comes after days of furious legal wrangling and a $60 billion lawsuit filed by Citigroup against both Wells and Wachovia yesterday. Insiders say Citigroup and Wells may reach a deal to carve up the struggling bank.
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UPDATED
'This is just about fear right now'
Wall Street Journal Oct 6, 08 1:58 PM CDT
(Newser)
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Stocks continued downward today, with the Dow falling a record 782 points, the Wall Street Journal reports, and settling mid-afternoon around 9,571, below 10,000 for the first time since October 2004. “This is just about fear right now, and whether stocks are going to close down 200 or 900 points,” said one trader. All 30 of the index's stocks were in the red.
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Deal would award $225M in severance, Citi charges—a bailout no-no
Financial Times (UK) Oct 6, 08 1:02 PM CDT
(Newser)
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Citigroup has sued Wells Fargo and Wachovia for $60 billion in damages, alleging the latter breached an exclusivity agreement in agreeing to its sale to Wells. Wells is also charged with violating Citi's right to purchase some of Wachovia's assets under a previous deal, reports Bloomberg. The Wells agreement would also trigger $225 million in executive severance packages, Citigroup says—a bailout no-no.
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Citi and Wells Fargo
would each get a piece of the struggling bank
Wall Street Journal Oct 6, 08 6:52 AM CDT
(Newser)
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Federal Reserve officials are pushing Citigroup and Wells Fargo to agree to a compromise giving each a piece of struggling Wachovia, with the Charlotte-based bank's 3,346 branches divided along geographic lines and Wells Fargo acquiring its investment units, reports the Wall Street Journal. The new deal, still being negotiated late last night, would not involve monetary support from the federal government.
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Court order says bank must only deal with Citigroup, for now
Reuters Oct 5, 08 8:00 AM CDT
(Newser)
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In a victory for Citigroup, a New York Supreme Court judge has halted a deal by Wells Fargo to buy Wachovia until further notice, announced Citi executives. The decision prolongs Wachovia’s earlier agreement to deal only with Citigroup as it battles with Wells Fargo to purchase the sixth-biggest US bank, Reuters reports. Wells Fargo argues that its deal is legal and best for Wachovia and taxpayers.
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Bank could make a better offer; may sue Wells Fargo
Wall Street Journal Oct 4, 08 9:05 AM CDT
(Newser)
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Left hanging after Wells Fargo swooped in with a better offer to purchase Wachovia, the troubled Citigroup is mulling its options. It could attempt to sweeten its earlier bid, perhaps including pieces of the company it hadn’t agreed to take earlier—or launch a lawsuit. Citigroup may argue that Wachovia’s deal with Wells Fargo violated an “exclusivity agreement,” the Wall Street Journal reports. “This is complete misconduct,” says a Citi exec.
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Bank says new buyout violates an exclusivity agreement
Bloomberg Oct 3, 08 11:43 AM CDT
(Newser)
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Citigroup is seeking to nullify the Wells Fargo takeover of Wachovia announced this morning, Bloomberg reports. Citi claims the $15.4 billion deal violates an exclusivity agreement it had worked out with Wachovia early this week. "Citi has substantial legal rights regarding Wachovia and this transaction,'' the bank said in a statement.
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