CNBC is reporting that merger talks between Citigroup (C) and Wachovia (WB) have advanced, with a meeting scheduled today for Citi executives. The major deciding factor is the status of $120B in bad debts for Wachovia, with Citi looking for help from the Fed as part of the bailout plan to sell the troubled assets. Wachovia has $400B in deposits, making it the sixth largest bank in the U.S. by assets with a strong presence in the East and Southeast regions.
Meanwhile, a tentative agreement has been reached for a $700B government fund to purchase bad debts from banks to free up the credit markets and allow banks to begin lending again. The bailout plan would make $250B available immediately upon enactment of the legislation with another $100B available at the discretion of the President and the final $250B subject to review by Congress.
$20.55 (09/28/08)
