Comments on: Fed Wants Citi and Wells to Kiss and Make Up Over Wachovia (Updated) http://www.nakedcapitalism.com/2008/10/fed-wants-citi-and-wells-to-kiss-and.html Sun, 22 Nov 2009 07:56:24 -0500 http://wordpress.org/?v=2.8.4 hourly 1 By: inside mole http://www.nakedcapitalism.com/2008/10/fed-wants-citi-and-wells-to-kiss-and.html#comment-19760 inside mole Mon, 06 Oct 2008 21:27:00 +0000 http://www.nakedcapitalism.com/2008/10/fed-wants-citi-and-wells-to-kiss-and-make-up-over-wachovia-updated/#comment-19760 Fresh off the presses from Wells:<br/>Wachovia, Citigroup and Wells Fargo, in consultation with the Federal Reserve, announce the<br/>following agreement.<br/>Wachovia, Citigroup, and Wells Fargo have agreed to:<br/>1. A standstill of all formal litigation activity effective immediately;<br/>2. Cease any formal discovery activities, and<br/>3. Cooperate in good faith to agree among themselves to secure orders where necessary in all<br/>applicable cases in all jurisdictions tolling any schedules for the filing of litigation papers<br/>or court appearances or any other formal litigation deadlines, with the goal of preserving<br/>the status quo during the litigation standstill period.<br/>This standstill agreement will terminate at noon on Wednesday, October 8, 2008, unless otherwise<br/>extended. Fresh off the presses from Wells:
Wachovia, Citigroup and Wells Fargo, in consultation with the Federal Reserve, announce the
following agreement.
Wachovia, Citigroup, and Wells Fargo have agreed to:
1. A standstill of all formal litigation activity effective immediately;
2. Cease any formal discovery activities, and
3. Cooperate in good faith to agree among themselves to secure orders where necessary in all
applicable cases in all jurisdictions tolling any schedules for the filing of litigation papers
or court appearances or any other formal litigation deadlines, with the goal of preserving
the status quo during the litigation standstill period.
This standstill agreement will terminate at noon on Wednesday, October 8, 2008, unless otherwise
extended.

]]> By: Jonathan Bernstein http://www.nakedcapitalism.com/2008/10/fed-wants-citi-and-wells-to-kiss-and.html#comment-19732 Jonathan Bernstein Mon, 06 Oct 2008 17:41:00 +0000 http://www.nakedcapitalism.com/2008/10/fed-wants-citi-and-wells-to-kiss-and-make-up-over-wachovia-updated/#comment-19732 Agree, Fusion.<br/>And the reason why they want to get involved in my opinion is this. BAC, C, and JPM have done the lion's share of the supervised acquisitions. Back in the day, usually strong institutions were the ones who took over weak ones. None of these three are particularly strong. So... the TARP is there to exchange these banks' toxic waste for pristine Treasurys. Not only that:<br/><br/>The Citi/ WB was extremely sweet for Citi. It was almost a bailout of C right there. If WFC snatches the prize (which might not be that much of a prize at all on these terms unless the tax advantages are really good, as Yves said) then the regulators will need to do something else to shore up Citi... or spend alot of the TARP on it. Agree, Fusion.
And the reason why they want to get involved in my opinion is this. BAC, C, and JPM have done the lion’s share of the supervised acquisitions. Back in the day, usually strong institutions were the ones who took over weak ones. None of these three are particularly strong. So… the TARP is there to exchange these banks’ toxic waste for pristine Treasurys. Not only that:

The Citi/ WB was extremely sweet for Citi. It was almost a bailout of C right there. If WFC snatches the prize (which might not be that much of a prize at all on these terms unless the tax advantages are really good, as Yves said) then the regulators will need to do something else to shore up Citi… or spend alot of the TARP on it.

]]> By: fusion http://www.nakedcapitalism.com/2008/10/fed-wants-citi-and-wells-to-kiss-and.html#comment-19701 fusion Mon, 06 Oct 2008 14:17:00 +0000 http://www.nakedcapitalism.com/2008/10/fed-wants-citi-and-wells-to-kiss-and-make-up-over-wachovia-updated/#comment-19701 Rodg Cohen is representing Wachovia.<br/><br/>The regulators think they can get involved because they have the power to approve any deal and to regulate each bank in the meanwhile Rodg Cohen is representing Wachovia.

The regulators think they can get involved because they have the power to approve any deal and to regulate each bank in the meanwhile

]]> By: russell1200 http://www.nakedcapitalism.com/2008/10/fed-wants-citi-and-wells-to-kiss-and.html#comment-19667 russell1200 Mon, 06 Oct 2008 09:22:00 +0000 http://www.nakedcapitalism.com/2008/10/fed-wants-citi-and-wells-to-kiss-and-make-up-over-wachovia-updated/#comment-19667 I find it very flattering that so many people are fighting over my checking account.<br/><br/>I just wish it had a balance even remotely large enough to worry about the insurance limits. I find it very flattering that so many people are fighting over my checking account.

I just wish it had a balance even remotely large enough to worry about the insurance limits.

]]> By: Tom Lindmark http://www.nakedcapitalism.com/2008/10/fed-wants-citi-and-wells-to-kiss-and.html#comment-19636 Tom Lindmark Mon, 06 Oct 2008 04:26:00 +0000 http://www.nakedcapitalism.com/2008/10/fed-wants-citi-and-wells-to-kiss-and-make-up-over-wachovia-updated/#comment-19636 Wait a minute. I know these are unusual times but can't we at least give a hat tip to the rule of law. The last time I checked, Wachovia was still an independent enterprise. Not in receivership or conservatorship. As such, don't they have the right to decide their future as well as certain fiduciary obligations to their owners? <br/><br/>Wells came up with a private sector response to the problem and the public sector is whining. Come on. Wait a minute. I know these are unusual times but can’t we at least give a hat tip to the rule of law. The last time I checked, Wachovia was still an independent enterprise. Not in receivership or conservatorship. As such, don’t they have the right to decide their future as well as certain fiduciary obligations to their owners?

Wells came up with a private sector response to the problem and the public sector is whining. Come on.

]]> By: ubetchaiam http://www.nakedcapitalism.com/2008/10/fed-wants-citi-and-wells-to-kiss-and.html#comment-19626 ubetchaiam Mon, 06 Oct 2008 02:55:00 +0000 http://www.nakedcapitalism.com/2008/10/fed-wants-citi-and-wells-to-kiss-and-make-up-over-wachovia-updated/#comment-19626 "But this is again who are the clear "winners" JP morgan, bank of america, golden s, and citi." ---so true; just read section 101(e) of the legislation.<br/>Talk about manipulation of markets; no, let's not, it's too depressing. “But this is again who are the clear “winners” JP morgan, bank of america, golden s, and citi.” —so true; just read section 101(e) of the legislation.
Talk about manipulation of markets; no, let’s not, it’s too depressing.

]]> By: Anonymous http://www.nakedcapitalism.com/2008/10/fed-wants-citi-and-wells-to-kiss-and.html#comment-19624 Anonymous Mon, 06 Oct 2008 02:49:00 +0000 http://www.nakedcapitalism.com/2008/10/fed-wants-citi-and-wells-to-kiss-and-make-up-over-wachovia-updated/#comment-19624 With the winter round the corner... it must be getting really freaking cold at the Fed with so many goddamn windows open. With the winter round the corner… it must be getting really freaking cold at the Fed with so many goddamn windows open.

]]> By: Anonymous http://www.nakedcapitalism.com/2008/10/fed-wants-citi-and-wells-to-kiss-and.html#comment-19622 Anonymous Mon, 06 Oct 2008 02:39:00 +0000 http://www.nakedcapitalism.com/2008/10/fed-wants-citi-and-wells-to-kiss-and-make-up-over-wachovia-updated/#comment-19622 Wells Fargo got the got a NY appellate court to overrule the trial court ruling blocking Wells acquisition. <a HREF="http://abcnews.go.com/Business/wireStory?id=5956716" REL="nofollow">ABC News Link</a> Wells Fargo got the got a NY appellate court to overrule the trial court ruling blocking Wells acquisition. ABC News Link

]]> By: doc holiday http://www.nakedcapitalism.com/2008/10/fed-wants-citi-and-wells-to-kiss-and.html#comment-19620 doc holiday Mon, 06 Oct 2008 02:31:00 +0000 http://www.nakedcapitalism.com/2008/10/fed-wants-citi-and-wells-to-kiss-and-make-up-over-wachovia-updated/#comment-19620 Good crap here:<br/><br/>Did Citi Really Win?<br/>http://dealbook.blogs.nytimes.co...iti-really-win/ <br/><br/>Meanwhile, the case is caught up in a procedural tangle as Citi tries to keep it in New York State Court and Wells Fargo and Wachovia try to remove it to federal court. Citi has sued Wells Fargo, Wachovia and all of their directors. The addition of the directors appears to be an attempt by Citi to prevent Wells and Wachovia from removing the case to federal court on the basis of diversity jurisdiction. Good crap here:

Did Citi Really Win?
http://dealbook.blogs.nytimes.co…iti-really-win/

Meanwhile, the case is caught up in a procedural tangle as Citi tries to keep it in New York State Court and Wells Fargo and Wachovia try to remove it to federal court. Citi has sued Wells Fargo, Wachovia and all of their directors. The addition of the directors appears to be an attempt by Citi to prevent Wells and Wachovia from removing the case to federal court on the basis of diversity jurisdiction.

]]> By: Anonymous http://www.nakedcapitalism.com/2008/10/fed-wants-citi-and-wells-to-kiss-and.html#comment-19621 Anonymous Mon, 06 Oct 2008 02:31:00 +0000 http://www.nakedcapitalism.com/2008/10/fed-wants-citi-and-wells-to-kiss-and-make-up-over-wachovia-updated/#comment-19621 "I don't know the firm Citi hired. It may be that it has expertise in bank regulatory matters, although you are right, the issue under dispute reads as an M&A issue. Surprising that no one has signed up one of the banking heavies, like Rodgin Cohen at Sullivan & Cromwell."<br/><br/>Joseph Gregory is a pure lit shop, not M&A or regulatory. They don't have the bodies or expertise to do a massive M&A deal.<br/><br/>Rodgin Cohen at Sullivan may be the banking lawyer with the biggest name. However, Wachtell, Sullivan Cromwell, Simpson Thacher, Cleary Gottlieb, Davis Polk, and Skadden are all heavyweights in banking M&A. "I don't know the firm Citi hired. It may be that it has expertise in bank regulatory matters, although you are right, the issue under dispute reads as an M&A issue. Surprising that no one has signed up one of the banking heavies, like Rodgin Cohen at Sullivan & Cromwell."

Joseph Gregory is a pure lit shop, not M&A or regulatory. They don't have the bodies or expertise to do a massive M&A deal.

Rodgin Cohen at Sullivan may be the banking lawyer with the biggest name. However, Wachtell, Sullivan Cromwell, Simpson Thacher, Cleary Gottlieb, Davis Polk, and Skadden are all heavyweights in banking M&A.

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