http://online.barrons.com/article/SB122309128710204813.html?...If the Wells-Wachovia deal goes forward, a standalone Citibank would rank No. 2 in deposits, with $804 billion. But if the Citibank-Wachovia deal occurs, it would have the nation's largest deposit base, $1.2 trillion, and Wells Fargo would be left in fourth place with its $339 billion of deposits. After acquiring most of Washington Mutual, JPMorgan Chase (JPM) has more than $900 billion of deposits.Wells Fargo's move was seen as a sign of optimism, given it would need no federal support. Wells Fargo is saying that in view of the depressed prices of mortgage assets, the potential rewards of doing this deal are now worth putting its franchise at risk, says Charles Peabody, an analyst at Portales Partners. And that might engender confidence in other investors looking to bargain-hunt.-------------------------This news largely got lost in the shuffle FridayA govt-"approved" takeover of Wachovia by Citi got outbid by Wells Fargo.This "should" have been good news.Instead of bank failures, we're starting to see buyouts.... which would you rather have?
Wells Fargo's move was seen as a sign of optimism, given it would need no federal support. I think Wells Fargo's goal with the Wachovia buyout was to turn themselves into a "Too Big To Fail Bank". With over $1 Trillion in deposits, there is no way our govt would let them fail. Despite what they say, I'd be surprised not to see some taxpayer money fall into this hole.Adenovir
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