Sunday, October 05, 2008

In Bed...

Here's the picture:

Wachovia, a large "plum" financial institution in trouble.

Merger with a healthier institution required by FDIC.

FDIC arranges a $2.1 billion purchase by Citi Bank.

Wells Fargo offers $14.8 billion, which is favored by Wachovia stockholders and would not cost the taxpayers anything.

FDIC objects and files an injunction against the $14.8 billion deal. Further background is explained here.

This is a snapshot of the FDIC in bed with Citi Bank, ya' think?

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