"That you may ruminate"

Posts Tagged ‘Thelma Drake’

…On Banking News!

Posted by Steve on October 4, 2008

My employer is a company. This company uses Wachovia for the majority of its banking. So, last week, my employer issued a statement to all employees regarding the announced sale of Wachovia’s banking elements to Citigroup and specifying the expected impact on things like our payroll and retirement and ability to pay our subs and where the clients need to mail the checks when the pay us and etc. Whether or not any impacts are predicted to exist, and if there are any what they are, is not an appropriate topic for this blog and I’m not going to talk about them. I mention that my company took steps to answer our curiosity about that sale’s impact on us only because I expect they’ll send around a new version of the statement next week, in light of the announced sale of Wachovia’s entirety to Wells Fargo. I’ve got to say, I like that Wells Fargo stepped in and did this, since the Citigroup sale would’ve included payments by the FDIC, and this apparently doesn’t. That’s a good thing. On the other hand, knowing as little as I know about the conditions and state of Wells Fargo, Wachovia, and Citigroup, I don’t know if this is a risky investment by Wells Fargo or not. I do know it’ll make them much more of a nation-wide bank, as right now, for instance, there are 0 Wells Fargo branches anywhere in Georgia, the Carolinas, Virginia, and Tennessee, while Wachovia’s got plenty of branches in those states. I also know that a recent IRS action, which I think is REG-102822-08 (but I’m not certain of that, and won’t be until I can confirm it with my dad, who’s a CPA that specializes in tax stuff), may make a loss on this still into a good move for Wells Fargo and its shareholders and depositors. I assume either move’s good for Wachovia employees and shareholders, and unlikely to impact Wachovia depositors much. I know this is terrible news for Citigroup, on the other hand, and they’ve made it pretty clear they aint gonna step aside all quiet-like. I smell litigation! Which, most likely, isn’t good for anybody involved.

Also, I wonder how much this was spurred by that financial-sector bailout bill, which passed after the House changed its mind. My praise for the House for rejecting that is now rescinded. Downside of trying to blog about current events, I guess: the damned things keep changing on you. Although, since I don’t often have any reason to praise her, (since I disagree with her positions on a great many issues), let me give my congratulations to my House member, Thelma Drake, for voting against the financial-sector bailout and thereby casting her vote in a manner I approve of. Now if only she’d voted against the domestic automaker bailout, too.

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