Its deposit amount has also gone down from $1.62 billion to $1.54 billion, in the metro area. 17 of the market’s 20 banking organizations went up in deposits. Bank of America (NYSE:BAC) along with Southern Bank (SBFC) was the other two banks to fall. Southern only went down by $70,000 and Bank of America by $3 million.

FDIC does its market share reports, by comparing the banks based on their data at the end of June. $7.05 billion is deposited in the banks. A year ago there was $6.6 billion deposited.

So it seems that people have started to take their money from under the mattress and started to believe in the banking system again. To read more on the story go to augusta.com.

The top ten executives of Wachovia Corp (NYSE: WB) will be eligible for huge severance pay amounting to $98.1 million after the troubled bank gets brought out by Wells Fargo & Co (NYSE: WFC) in December.

Wachovia shareholders will vote on the merger with Wells Fargo on December 23 according to papers filed with the Securities and Exchange Commission.

According to Wachovia if the deal closes by December 31 the executives will lose their jobs and will receive severance under their employment agreement. This could see the top executives getting a total of $2.5 million in stock-based awards.

The merger deal was announced October 3 which stated that Wells Fargo was acquiring Wachovia in an all stock deal costing $15.1 billion.

Citigroup originally was in a purchasing deal of Wachovia’s banking division for $2.16 billion, not long after this was announced Wells Fargo offered to buy the entire troubled bank.

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The third quarter loss was announced after Wells Fargo had agreed to pay $15.1 billion for the troubled lender without any government backing to cover possible losses. As Wells Fargo’s share declined the value dropped down to about $14 billion.

Citigroup originally was bidding for part of Wachovia and had offered $2.16 for a slice with a government backing limit loan loss, But Citigroup lost the bid to the San Francisco based Wells Fargo when they agreed to buy the company and absorb losses of $74 billion.

Due to the merger break-up between the two lenders, Citigroup is now suing Wachovia for $60 billion in damages.

Once Wells Fargo takes over Wachovia which should be by the end of the year, the merged lender will have 280,000 employees, 6,600 branches, and $700 billion of deposits and $1.4 trillion of asset.
On Tuesday Wachovia stocks closed at $6.09.

Source: nytimes

Wells Fargo’s purchase of troubled Wachovia for $12 billion is just the latest move to rattle the already fast-moving banking and financial system, however if you are an inland customer of either Wachovia or Wells Fargo analysis expect the deal will not cause to many problems.

North Carolina-based Wachovia being new to the California market and with very little overlap with Wells Fargo’s branches is seen as being the main reason there will be little change. Experts predict that due to little duplication there will not be widespread office closures. Nor do they feel that there will be any major changes in service or fees once the deal has been finalised.

Although if there were to be any local branch closures it is thought they would be in Texas and California where the two companies do have overlaps.

Wachovia declined a deal with Citigroup which has 26 Inland Citibank branches earlier after announcing the agreement to sell its banking operation to New York headquartered Citigroup.

Both Wells Fargo and Wachovia have a combined total of 76 branches locally, which would make it second to Bank of America who has a whopping 90 Inland offices. Presently Wells Fargo has 57 inland region locations currently open and Wachovia has 17. However Wachovia has a branch opening this month in Palm Desert and next month in Palm Springs.

Source: Pe.com

Wells Fargo and Citigroup were told to hold all legal proceedings over the buy-out of Wachovia until noon on Wednesday. This held the cautious investors back on Tuesday whilst they continue to wait for a compromise between the two banks over the fight for Wachovia.

Taking a look at the shares at mid-morning, Citigroup fell 45 cents or 2.6 percent down to $16.96, whilst Wells Fargo dropped 20 cents to $33.44 and after a changeable early trade Wachovia gained 7 cents to $5.85.

According to media reports the talks could lead to the New York based Wachovia between Wells Fargo and Citigroup as the federal government step in to intervene to avoid a long drawn out court battle, although both banks have stressed the urgency to the Federal government as to make a decision and fast as they feel any more strain on the troubled bank could weaken the health of Wachovia even further.

Read the full article: forbes

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

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Wells Fargo signed the offer to buy Wachovia Corporation last night with no government backing in a stock-by-stock merger deal. Each Wachovia common stock share will be exchanged for 0.1991 of Wells Fargo common stock shares, which means a value of $7 per share under the Wells Fargo proposal, this share value is based on Wells Fargo’s closing stock price on October 2, 2008.

Citigroup had previously been in negotiations with Wachovia and the deal was to be supervised by the FDIC that included government assistants, however Wells Fargo was approved by Wachovia’s board last night.

This merger will mean that Wells Fargo and Wachovia Corp. will have assets of $812.4 billion and market capitalization of $33.5 billion this making it the one of the nation’s biggest diversified financial service companies.

Read the full article: WSJ

US banking giant Citigroup Inc have announced the deal where it buys Wachovia Corps. Banking operations, this will give them around 3,300 more offices in 21 states in the deal that cost them about $2.16 billion.

Once Citigroup completes the Wachovia takeover the combined firm will have more than $600 billion in deposits and around 4,300 US bank offices and for a giving Citigroup a 9.8 percent share of the US banking market

Regulators say that the North Carolina lender Wachovia didn’t fail, Wachovia investors will only get $1 a share as the lender loses its biggest unit; back in April 2006 the each share value topped $59. The Federal Deposit Insurance Corp who aided in broking the deal between Wachovia and Citygroup said that all depositors will be protected.

The deal took place only hours before the US congress rejected President Bush plea for the US governments $700 billion bailout. On today’s trading Citigroup shares dropped 12 percent to $17.75.

Read the full article: bostonglobe

America stocks took a major slump on Monday as Wachovia takeover from Citigroup, and three European banks required government rescues, as President Bush $700 billion rescue plan to improve the world financial markets comes under closer scrutiny and concern.

Wachovia Corp. shares dropped over 90 percent in early trading after Citigroup Inc done a deal to buy its banking operation and take as much as $42 billion in losses.

News of the Wachovia buyout caused havoc on the New York Stock Exchange on Monday; Ohio’s largest bank National City Corp took a 22 percent downslide whilst JPMorgan Chase & Co fell 5 percent. Freeport-McMoRan Copper & Gold Inc slid 12 percent and the Dow Jones Industrial Average went down 2.2 percent to 10,901.24. More evidence of how the credit crisis is hitting the world economy and stock markets.

JPMorgan, which became the largest U.S. bank by deposits after purchasing branches from Washington Mutual Inc. last week, slid $2.42 to $45.82. National City lost 81 cents to $2.90.

Read the full article: Bloomberg

Just announced US bank Wachovia has been taken over by Citigroup the world’s biggest bank. America has yet again woken up to another huge troubled high Street bank being rescued.

Wachovia who held $312 billion loans that had a huge portfolio or high risk mortgages knows as ARMs has been helped by the Federal regulators to broke the deal allowing Citigroup to absorb $42 billion (£23 billion) of the losses.

The Federal Deposit Insurance Corporation (FDIC) will take any losses beyond Citigroup’s agreed liability in return for preferred stock for bearing risk valued at $12 billion under the deal.

Unlike Washington Mutual the FDIC stresses that Wachovia did not fail, the US bank suffered a run on deposits last week which lead to the authorities to seize them.

Read the full article in the Guardian