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Wachovia Chief: Customers Are Okay

In a letter from Wachovia Securities chief executive Danny Ludeman to his banking and brokerage clients yesterday, Ludeman said: "The most important thing to bear in mind is that your relationship with your financial adviser will not change," adding that the company's headquarters will remain in St. Louis.

Ludeman wrote that his company signed the merger agreement with Wells Fargo on Friday. Also yesterday, in a deal brokered by the Federal Reserve, Citigroup, Wells Fargo and Wachovia have agreed to stop all the lawsuits underway spurred by the deal. Citigroup thought it had a deal to acquire Wachovia until Wachovia turned around and said it was merging with Wells Fargo.

Lawsuits ensued. So to speak.

"Following the Wells Fargo announcement, several developments have occurred. We understand that you continue to see press reports on the complex legal proceedings involving Wachovia, Wells Fargo and Citigroup," Ludeman wrote. "Please rest assured these events in no way affect our ability to serve our clients. We continue to operate as Wachovia Securities, there are no changes to your accounts, and insured deposits are covered by the FDIC."

In comments just concluded, Federal Reserve Chairman Ben Bernanke said that there will be "no interruptions of banking services" at Wachovia.

-- Frank Ahrens

By Frank Ahrens  |  October 7, 2008; 1:40 PM ET
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Comments

I hold a lot (for me anyway) of Wachovia common stock. There's plenty of info about what will happen to or the security of the employees and customers - what I am curious about is what will happen to my investment(s)? A lot of folks (particularly ex-banking industry people in NC) hold this kind of stock and little or nothing is out there for us. Help!?! We would love some info!

Posted by: small fish in NC | October 7, 1908 3:23 PM | Report abuse

I think when comparing offers people should understand that the Wells offer, which a higher share price WILL cost taxpayers since Wells has hedged the deal on a tax loophole that is there because of TARP and if you think Wells wasn't planning on ditching the bad Wachovia assets on TARP "aka" us taxpayers, one is sadly mistaken. Thing about it.....Wells found a way to dump the bad knowing that the $700 billion bailout/rescue plan would absolve them from any real loses on the deal with Wachovia. Just food for thought...

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Posted by: chris | October 7, 1908 4:11 PM | Report abuse

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