Mergers are fun

Update: Citigroup will acquire Wachovia – Breaking News from The Birmingham News –

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?

2 responses to “Mergers are fun

  1. And at about the same time, Compass got bought by some Spanish bank, right? And AmSouth and Regions merged. Odd to see how quickly one of the best little banking centers in the nation just suddenly imploded.

    Fast-forward to the present and we are in some seriously deep shit. God only knows how many more banks will fail and how many personal bankruptcies will be filed. If the credit card companies suddenly decide to jack everyone up to 29.99% APR it’s going to be mighty ugly.

    At least I have something of a recession proof job though I’m willing to bet that I won’t be getting the raise that I’m due after my next evaluation. Sux 2 be me but it prolly sux to be most people these days so I can’t complain.

    Although those fucktards who listen to talk radio are probably making out like bandits cause they bought gold cheap like Hannity and Medved told them to.


  2. Been warning people about this one for a while. In all fairness, Wachovia didn’t make most of the bad loans themselves, they bought another company that was getting rich making them and now can’t cover their ass.

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