Feds OK Wells Fargo-Wachovia merger
Combined company to have offices in 39 states
By Inman News, Friday, October 10, 2008.Wells Fargo & Co. has the go-ahead from federal antitrust regulators to acquire Wachovia Corp. in a $12 billion deal that will create a combined company with $1.42 trillion in assets, 48 million customers, and community banks in 39 states.
Although Wachovia shareholders must still approve the deal -- and a rival suitor for Wachovia, Citigroup, remains determined to pursue a $60 billion breach-of-contract suit -- Wells Fargo said it plans to complete the acquisition by the end of the year.
After agreeing last month to absorb up to $42 billion in losses on loans on Wachovia's books to acquire the Charlotte, N.C.-based company's banking operations (see Inman News story), Citigroup was outflanked by a competing offer from Wells Fargo.
The Federal Trade Commission agreed to an early termination of its antitrust review of Wells Fargo's plan to acquire Wachovia, the Associated Press reported.
If finalized, the deal would further consolidation of the banking industry resulting from the housing downturn and credit crisis.
JP Morgan Chase last month agreed to acquire Washington Mutual Bank, creating a mortgage-lending giant that is expected to rival the combination of Bank of America and Countrywide Financial Corp. (see story).
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Submitted by Lori Bee , NC/SC Broker on October 10, 2008 - 10:55am.
Well, we here in Charlotte, are certainly happy that finally, the "powers that be," allowed this merger to progress. It's just a shame that the FDIC & FTC got in the middle of everything in the first place. Gotta seriously wonder about the "details" here. Lots of rumors flying about town, but without confirmation, I won't divulge...
All I care about at this point is that Wells Fargo does it's best to retain it's employees here (approx. 4000 to 4500 - most of which are 6 digit jobs), and that Citigroup drops it's breach of contract suit. It is in the ENTIRE nation's best interest.
It's been more than a difficult couple of weeks here in the Queen City. But as Mayor McCrory said last night on NBC News, we are a "tough town and get back up real fast."