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Ragged 1 month ago under: Golden West Financial Corp, Big Three, JP Morgan Chase, Federal Deposit Insurance Corp, Bank Of America Corp, Wachovia Corp
Source: nydailynews.com
Citigroup will absorb up to $42 billion of losses in the deal, with the FDIC covering any remaining losses, the government agency said Monday. Citigroup also will grant the FDIC $12 billion in preferred stock and warrants.
The deal greatly expands Citigroup's retail outlets and leaves it among thebanking industry's Big Three along with Bank of America Corp. and J.P. Morgan Chase & Co.
The deal comes after a fevered weekend courtship in which Citigroup andboth were reportedly studying the books of Wachovia, which was suffering from mounting mortgage losses linked to its ill-timed 2006 acquisition of mortgage lender Golden West Financial Corp...." nydailynews.com
Ernie Co
It seems to me that amidst the flurry of mergers and acquisitions, bloat begins to trouble big organizations. I was worried about this when it was just the First Union - Wachovia Merger. I can't imagine the number of inefficiencies that were probably introduced into Bank Of America by subsuming so many redundant organizations.
My friend works for Wachovia,I hope his job is ok!
I wonder if Wachovia still wants the $22 I owe them...
that's where risky lending and exortionist rates get you
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Customer deposits are safe, but company stock and 120,000 jobs are not.