Bye Bye Wachovia

http://dealbook.blogs.nytimes.com/2008/09/29/citigroup-nears-a-deal-for-wachovia/index.html?hp

"As part of the deal, Citigroup will absorb up to $42 billion of losses on Wachovia’s $312 billion pool of loans — but the Federal Deposit Insurance Corporation will absorb losses beyond that. In return, the banking giant has given the FDIC $12 billion in preferred stock and warrants as compensation.

In a statement, the FDIC, which insures the nation’s retail bank deposits, emphasized that Wachovia did not fail and that the Deposit Insurance Fund would not be affected."

How can the FDIC "absorb losses beyond that" and yet "not be affected"? If those loans go bad, who will pay? Is this smoke and mirrors to hide the fact that Wachovia essentially failed?

That's another 5-10K of layoffs. Most in Charlotte but will still result in a couple thousand layoffs in NYC.

C will move its retail banking headquarters to Charlotte, because that's where the people who know how to run a retail bank live, and it's cheaper. Plus if they want to poach better bankers, BAC is also headquartered in Charlotte.

The cuts will come in Manhattan.

From Citi's press release: "Moreover, it is essential that Wachovia, a company we deeply respect, maintain a strong presence in Charlotte, N.C."

Bye-bye New York jobs.

"C will move its retail banking headquarters to Charlotte, because that's where the people who know how to run a retail bank live, and it's cheaper. Plus if they want to poach better bankers, BAC is also headquartered in Charlotte."

Really steve? You think so? This is a bit speculative don't you think? Not that you have a problem throwing out stuff that you read on the internet, but your reasoning here is pretty shaky.

"From Citi's press release: "Moreover, it is essential that Wachovia, a company we deeply respect, maintain a strong presence in Charlotte, N.C."

Bye-bye New York jobs."

Why would it be bye-bye New York jobs? Wachovia is Headquartered in Charlotte. They either keep a presence or they don't. Why would you assume this is bad for NY?

I find it troubling that certain people here so dislike NYC and NYers that they seem to enjoy this: "Bye-bye New York jobs?" Well, that is very nice of you.
What would be wrong with saying, "NY could lose some jobs over this" and "There's an argument to be made for moving jobs to Charlotte out of NYC" ... not be so definitive
and add, "unfortunately" ... show a bit of a human side.

What is with the internet that it makes so many people act like jerks.

Steve, "Bye-bye New York jobs"? Really? And I'm supposed to buy your "riddance" argument now? Yikes. On top of that, how does allowing a company based in Charlotte to maintain a strong presence (again, in Charlotte) lead one to believe "bye-bye New York jobs"?