Comments on: Citi Will Buy Wachovia Operations http://www.nakedcapitalism.com/2008/09/citi-will-buy-wachovia-operations.html Sun, 22 Nov 2009 02:09:47 -0500 http://wordpress.org/?v=2.8.4 hourly 1 By: baychev http://www.nakedcapitalism.com/2008/09/citi-will-buy-wachovia-operations.html#comment-18246 baychev Mon, 29 Sep 2008 17:33:00 +0000 http://www.nakedcapitalism.com/2008/09/citi-will-buy-wachovia-operations/#comment-18246 Delusional.<br/>FDIC's reserves are about 45bn and this is about the size of their guarantee to Citi. Would it matter if they get any Citi stock after going belly up? Or this is a de-facto marriage-yet-to-be-consumed by a federal agency and a private bank? Delusional.
FDIC’s reserves are about 45bn and this is about the size of their guarantee to Citi. Would it matter if they get any Citi stock after going belly up? Or this is a de-facto marriage-yet-to-be-consumed by a federal agency and a private bank?

]]> By: Anonymous http://www.nakedcapitalism.com/2008/09/citi-will-buy-wachovia-operations.html#comment-18244 Anonymous Mon, 29 Sep 2008 17:32:00 +0000 http://www.nakedcapitalism.com/2008/09/citi-will-buy-wachovia-operations/#comment-18244 Does anyone know why on this one Citi is assuming $53B in senior & sub debt of the Wachovia holding company, whereas on WaMu that debt was effectively wiped out? Seems like the $53B could have gone toward reducing the FDIC loss guarantee. Something to do with CDS, or maybe GS is a debt holder? Does anyone know why on this one Citi is assuming $53B in senior & sub debt of the Wachovia holding company, whereas on WaMu that debt was effectively wiped out? Seems like the $53B could have gone toward reducing the FDIC loss guarantee. Something to do with CDS, or maybe GS is a debt holder?

]]> By: VoiceFromTheWilderness http://www.nakedcapitalism.com/2008/09/citi-will-buy-wachovia-operations.html#comment-18233 VoiceFromTheWilderness Mon, 29 Sep 2008 16:18:00 +0000 http://www.nakedcapitalism.com/2008/09/citi-will-buy-wachovia-operations/#comment-18233 Is this legal?<br/><br/>The agencies of the federal government, first the fed and now the fdic, are being used as LBO financing by powerful, connected financial firms.<br/><br/>Welcome to the age of crony capitalism. Actually welcome to the age of financeocracy --government by and for finance firms. Is this legal?

The agencies of the federal government, first the fed and now the fdic, are being used as LBO financing by powerful, connected financial firms.

Welcome to the age of crony capitalism. Actually welcome to the age of financeocracy –government by and for finance firms.

]]> By: gsm_73 http://www.nakedcapitalism.com/2008/09/citi-will-buy-wachovia-operations.html#comment-18223 gsm_73 Mon, 29 Sep 2008 15:27:00 +0000 http://www.nakedcapitalism.com/2008/09/citi-will-buy-wachovia-operations/#comment-18223 Dear YS<br/>have u seen this?<br/><br/>Morgan Stanley Completes Mitsubishi Deal<br/><br/>http://www.nytimes.com/2008/09/30/business/worldbusiness/30morgan.html?ref=business Dear YS
have u seen this?

Morgan Stanley Completes Mitsubishi Deal

http://www.nytimes.com/2008/09/30/business/worldbusiness/30morgan.html?ref=business

]]> By: Anonymous http://www.nakedcapitalism.com/2008/09/citi-will-buy-wachovia-operations.html#comment-18218 Anonymous Mon, 29 Sep 2008 15:01:00 +0000 http://www.nakedcapitalism.com/2008/09/citi-will-buy-wachovia-operations/#comment-18218 The government appears to be trying to lower the cost of TARP by wiping out equity in some of the largest institutions that would have used it. The government appears to be trying to lower the cost of TARP by wiping out equity in some of the largest institutions that would have used it.

]]> By: Dave http://www.nakedcapitalism.com/2008/09/citi-will-buy-wachovia-operations.html#comment-18215 Dave Mon, 29 Sep 2008 14:58:00 +0000 http://www.nakedcapitalism.com/2008/09/citi-will-buy-wachovia-operations/#comment-18215 This deal smells fishy to me. WB stock is halted yet the company was not seized by the Feds. Shareholders must approve this deal and they get... $1 Citi stock?? I don't think this will fly, even in the current market environment. This deal smells fishy to me. WB stock is halted yet the company was not seized by the Feds. Shareholders must approve this deal and they get… $1 Citi stock?? I don’t think this will fly, even in the current market environment.

]]> By: S http://www.nakedcapitalism.com/2008/09/citi-will-buy-wachovia-operations.html#comment-18214 S Mon, 29 Sep 2008 14:56:00 +0000 http://www.nakedcapitalism.com/2008/09/citi-will-buy-wachovia-operations/#comment-18214 Remaining assets at Wachovia about $1.5B in earnigns..8x gets you 8-10B on 2.3B shares - $4-5 buicks/ Also get $1 from citi as comp. Remaining assets at Wachovia about $1.5B in earnigns..8x gets you 8-10B on 2.3B shares – $4-5 buicks/ Also get $1 from citi as comp.

]]> By: S http://www.nakedcapitalism.com/2008/09/citi-will-buy-wachovia-operations.html#comment-18212 S Mon, 29 Sep 2008 14:54:00 +0000 http://www.nakedcapitalism.com/2008/09/citi-will-buy-wachovia-operations/#comment-18212 Citi finally finds cover to cut the dividend. <br/><br/>National Champions: WFC, JPM, BAC, C<br/><br/>Ibanks: GS, MS<br/><br/>Roubini has it exactly right -- disgraceful!! Citi finally finds cover to cut the dividend.

National Champions: WFC, JPM, BAC, C

Ibanks: GS, MS

Roubini has it exactly right — disgraceful!!

]]> By: Jerry http://www.nakedcapitalism.com/2008/09/citi-will-buy-wachovia-operations.html#comment-18211 Jerry Mon, 29 Sep 2008 14:52:00 +0000 http://www.nakedcapitalism.com/2008/09/citi-will-buy-wachovia-operations/#comment-18211 does anyone know when Wachovia's stock is gonna open?<br/><br/>I have some puts and am just waiting to see what they're gonna be worth today. does anyone know when Wachovia’s stock is gonna open?

I have some puts and am just waiting to see what they’re gonna be worth today.

]]> By: mjs http://www.nakedcapitalism.com/2008/09/citi-will-buy-wachovia-operations.html#comment-18208 mjs Mon, 29 Sep 2008 14:33:00 +0000 http://www.nakedcapitalism.com/2008/09/citi-will-buy-wachovia-operations/#comment-18208 I agree, tyaresun. What taxpayer wouldn't prefer the $700b be used to temporarily re-insure our savings and retirement funds as the financial services industry contracts to a more appropriate size? Instead the government decides this is the best time to get into the hedge fund business..... I agree, tyaresun. What taxpayer wouldn’t prefer the $700b be used to temporarily re-insure our savings and retirement funds as the financial services industry contracts to a more appropriate size? Instead the government decides this is the best time to get into the hedge fund business…..

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