For general discussion and debate. Possible talking point: NY judge blocks sale of Wachovia to Wells Fargo:
A New York State judge has temporarily blocked the merger of Wachovia with Wells Fargo, according to a news release by Citigroup - which is trying to buy Wachovia itself...The battle also has implications for taxpayers. The Citigroup offer had come with a backstop from the Federal Deposit Insurance Corporation (FDIC), would cover any losses on Wachovia's $300 billion loan portfolio beyond the first $42 billion. The Wells offer does not ask for FDIC assistance.
This one should clearly interest taxpayers, for the Wells offer is not only better for Wachovia stockholders, but also costs the U.S. government and the FDIC NOTHING. As such, if Citicorp ends up winning the court battle, the entire nation loses. Thoughts?
