US shares shoot up as Wells Fargo buys Wachovia
Oct 03, 2008 | Comments 0
Wells Fargo one of America’s strongest banks signed a deal to buy Wachovia the troubled bank for $15 billion. US stocks were poised to shoot up on early trade.
Before the deal took place last night, Wachovia was in negotiations with Citigroup to buy out parts of Wachovia arranged by the FDIC that included help from the US government.
Optimism regarding the House of representatives approving the new proposed $700 billion bailout has also proved to encourage the US market with Wall Street already gaining before opening, Wachovia shares leaped 74 percent to $6.83, the US electronic traded fund that tracks the financial sector XLF.A saw a 2.4 percent increase. However shares in Citigroup fell 13.3 percent to $19.50.
Read the full article: Reuters
Filed Under: Business News