FDIC, Fed and Comptroller comment on Wells Fargo deal
The government bodies say they will make sure any deal protects the public.
Following the announced merger of Wachovia Corp. and Wells Fargo, the Federal Deposit Insurance Corp. said it stands behind Wachovia’s previously announced agreement with Citigroup but that no matter what happens, “all banking customers of the merged institutions would be fully covered with no disruptions in service.”
“The FDIC will be reviewing all proposals and working with the primary regulators of all three institutions to pursue a resolution that serves the public interest,” FDIC Chairwoman Sheila Bair said in a statement.
Additionally, the Federal Reserve and the Office of the Comptroller of the Currency issued a statement in which they said that they have “not yet reviewed the new Wells Fargo proposal and the issues that it raises.”
“The regulators will be working with the parties to achieve an outcome that protects all Wachovia creditors, including depositors, insured and uninsured, and promotes market stability,” the Fed and the OCC said.
Wachovia stock was up $2.75 per share, or 70%, to $6.66 per share just before noon, while Citigroup shares slid $2.01, or 9%, to $20.49 per share. Wells Fargo shares gained $2.09, or 6%, to $37.25 per share.
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