The Virginian-Pilot
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Wachovia has a major presence throughout Hampton Roads, and the agreement with Citigroup will affect deposits and loans with thousands of consumers.
Q. Is my money safe?
A. Yes. The Treasury Department and the Federal Deposit Insurance Corporation said that all Wachovia depositors will be protected. For Wachovia customers, the action on Monday “will ensure seamless continuity of service from their bank and full protection for all of their deposits,” FDIC Chairman Sheila Bair said in a statement. “There will be no interruption in services, and bank customers should expect business as usual.”
Q. Do I have to do anything differently if I’m a customer of Wachovia Securities?
A. No. “It’s business as usual,” said Christine Shaw, a Wachovia spokeswoman.
Q. Why did federal regulators push for a sale of Wachovia Bank?
A. Wachovia Bank did not fail, but tight credit conditions and the deterioration of its loan portfolio prompted mounting concern about its safety and soundness.
Q. When will the sale be completed?
A. Wachovia’s agreement with Citigroup still must be approved by Wachovia’s shareholders and by regulators. The transaction is expected to close before year’s end.
Q. What happens to Wachovia Corp.?
A. It will remain a publicly traded company and continue to own the brokerage subsidiary Wachovia Securities and Evergreen Asset Management.
Q. How will Wachovia’s shareholders come out in the transaction?
A. Most will see their holdings sharply reduced. They will receive about $1 of Citigroup common stock for each of their Wachovia shares. That’s down sharply from the $10 closing price for Wachovia’s shares on Friday.
Q. How does the quality of Citigroup’s consumer banking compare with Wachovia’s?
A. In its latest study of bank customer satisfaction, the marketing information service J.D. Power and Associates said that Wachovia had a 729 index in the mid-Atlantic region, a point ahead of the 728 for Citigroup’s Citibank subsidiary. Both fell below the average for the mid-Atlantic region of 730, according to the study, which was released in May. In the Southeast, Wachovia had an index of 747, which was slightly ahead of the 742 average for the region, J.D. Power said.
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Fisher Investments MarketMinder Article: Build a Man a Fire...
Fisher Investments MarketMinder offers another interesting look at government’s action to help stabilize financials: Build a Man a Fire…, 10/6/08
http://www.marketminder.com/a/fisher-investments-us-economy/52b26544-1bbf-4ec6-b63f-2838dbe33f84.aspx
what does this do to the new Wachovia
Wachovia Bank and highrise that is to be built in downtown?
re: Mccain got us into this mess
ches37 wrote:
For years Obama warned us about this mess and we should have followed his plan.
FOR YEARS?! With a whopping 143 days experience as a senator under his belt and an abysmal voting record, Mr. Obama has not warned us of anything "for years." And what plan "should we have followed?" I have yet to see anything substantial from his campaign except “CHANGE.”
As outlined on msnbc, Mccain alone, created this crisis.
Yeah, that's an un-biased source; probably the worst informed, poorly rated news network on the air today. I suggest you look at several of the links in this thread for some factual information rather than Chris Matthews' garbage.
No one likes taxes but now is the time to increase everything…
No, we need the Fair Tax, not an increase in taxes.
Local banks
If the lcoal banks are so strong why have many of them had stock offerings in the last 60 days? Gateway just dodged the bullet by being absorbed by Bank of Hampton Roads.
The Buyout of area Banks
When I look at the news and see another bank in trouble. This reminds me of the greed of man. Many time we are trying to make as large of profit as possible, we forget about people. Many small business are successful, because they serve the people and not a bottom line. The chicken has come home to roost.
This all started in 1999 under the Clinton administation
This weekend to the DEM's embarassment the New Your Times produced a article written 9/30/99 from thier archives that showed how President Clinton (DEM) directed Fanny Mae to loser thier leanding guidelines to allow more to purchase homes. Some times the facts are irrefutable.
Under a Republican President the Democrats repeatly voted down changes to have the lending guideline tightened.
http://query.nytimes.com/gst/fullpage.html?res=9C0DE7DB153EF933A0575AC0A96F958260
Chicken little syndrome!
Has any one looked at the euro since this all has happened, our dollar has strenghtned againest the EURO for the first time in months. A barral of oil is estimated drop to the low 80's, Stock market is on the rebound. I'm really starting to wonder if we are not bailing out the upper 10% again.
Todays prime intrest rate forcast show the rate dropping from 5.0 to 4.75.. So I ask are we really going down the tubes. Maybe those wall street fat cats need to eat beans and rice or liquadate thier lear jet/20,000 sq foot homes if they are worried about making payrolls.
Get ahold of your Senator and tell them that thier re-election chances are in risk if they approve this bail out.
RE: not likely
What I would like to see is stopping the blame game and try and see what the "real" problem is and what is realistic in solving it, but so many, and on here also, aren't taking a look at the issue, just throwing out comments that don't make a lot of sense and show little knowledge of what's going on.
I'm sorry but McCain did not anticipate the housing crisis...
See him say it himself: http://www.youtube.com/watch?v=L1P1Qc-RrJ8
Not likely
This issue is very complex, requires a great deal of discussion, research and thought before it advances in either direction...
Smart comment but that kind of rationality is not likely the month before a major election.