Everyone wants the loans that they can sell back to Treasury!
Under pressure from the federal government, Citigroup Inc. and Wells Fargo & Co. were locked in negotiations Sunday night aimed at trying to defuse the battle for Wachovia Corp., according to people familiar with the situation.
In a sign that U.S. officials are concerned about the increasingly volatile situation, officials from the Federal Reserve were pushing hard for Citigroup and Wells Fargo to reach a compromise. That effort could result in essentially carving up the Charlotte, N.C., bank between its two suitors, these people said.
Under the leading plan being discussed Sunday night, Citigroup and Wells Fargo would divvy up Wachovia's network of 3,346 branches along geographic lines, with Citigroup getting Wachovia's branches in the northeast and mid-Atlantic regions and Wells Fargo taking those in the Southeast and California, according to people familiar with the talks. Wells Fargo would take over Wachovia's asset-management and brokerage units.
Unlike Citigroup's original agreement to take over Wachovia, in which the Federal Deposit Insurance Corp. agreed to shoulder potentially hundreds of billions of dollars in toxic loans, the plans being discussed Sunday night don't entail either buyer receiving financial assistance from the U.S. government, according to a person briefed on the talks.
No financial assistance? Treasury just got $700 billion. These banks are getting assistance. Why do you think they are carving them up? If Citigroup would of raised cash in an offering, they could of outbid Wells. And if Wells wasn't going to sell these loans back to Treasury, they wouldn't of had to play ball. Ramos' injunction was already overturned.
The only question remaining is-Does Ramos have a William Jefferson freezer?
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