Update: Citigroup will acquire Wachovia – Breaking News from The Birmingham News – al.com
So once, there was a bank called SouthTrust. (Actually, I remember when it was Birmingham Trust National Bank. I am old.) It was a perfectly good bank. In fact, it was so good that another bank, from North Carolina, bought it for $14.3 billion in stock, and fired a bunch of people in Birmingham who had helped to make SouthTrust a good bank.
However, that bank from North Carolina, it turns out, had given a whole lot of money to people who could not pay them back because those people shouldn’t have borrowing that much money. And now, the bank’s stock has cratered, so that $14.3 billion is now worth only about $2.9 billion. And an even bigger bank, from New York, is going to buy the bank from North Carolina, and fire a whole lot of people in Birmingham, who didn’t do anything wrong.
Though at least “Citibank” is a better name than “Wachovia”. What the hell is a Wachovia?
Thomason Tracts 