The US Federal Reserve on Sunday approved Wells Fargo’s takeover of troubled banking rival Wachovia, a deal which would create the largest bank branch network in the US.
“The Federal Reserve Board on Sunday announced its approval of the application ... by Wells Fargo & Company, San Francisco, California, to acquire Wachovia Corporation and its subsidiary banks,” the Fed said in a statement on its Web site.
The Fed’s approval, adopted by a unanimous board decision, follows Citigroup’s decision on Thursday to end court efforts to block Wachovia’s merger with Wells Fargo, which it claimed was illegal after its own, US government-backed takeover deal forged on Sept. 28.
Wachovia, the fourth-largest US bank by assets, with headquarters in Charlotte, North Carolina, faced a near collapse of its share price and weakening confidence because of its exposure to the subprime mortgage crisis.
The planned acquisition by Wells Fargo — which traces its roots to the Wild West and the 19th century gold rush in California — would give it the biggest network of branches in the US.
In addition to the acquisition of Wachovia’s subsidiary banks, the Fed said in a statement, “Wells Fargo has requested the board’s approval ... to acquire the nonbanking subsidiaries of Wachovia, including Wachovia’s two subsidiary savings associations.”
Wells Fargo, the Fed said, “also proposes to acquire the agreement corporation and Edge Act subsidiaries and the foreign operations of Wachovia.”
The Fed said the two sides in the deal have 30 days to submit “views and recommendations” on the proposal.
Wells Fargo offered US$15.1 billion in an all-stock deal to buy all of Wachovia, and recently stressed that its proposal did not have any government involvement or taxpayer risk.
Citigroup had offered to pay US$2.16 billion in stock for Wachovia’s banking activities and some of its debts.
When the merger is complete, Wells Fargo has said, the combined bank will have US$1.42 trillion in assets, US$787 billion in deposits, 48 million customers, US$258 billion in assets under management in mutual funds and 280,000 employees.
NO HUMAN ERROR: After the incident, the Coast Guard Administration said it would obtain uncrewed aerial vehicles and vessels to boost its detection capacity Authorities would improve border control to prevent unlawful entry into Taiwan’s waters and safeguard national security, the Mainland Affairs Council (MAC) said yesterday after a Chinese man reached the nation’s coast on an inflatable boat, saying he “defected to freedom.” The man was found on a rubber boat when he was about to set foot on Taiwan at the estuary of Houkeng River (後坑溪) near Taiping Borough (太平) in New Taipei City’s Linkou District (林口), authorities said. The Coast Guard Administration’s (CGA) northern branch said it received a report at 6:30am yesterday morning from the New Taipei City Fire Department about a
IN BEIJING’S FAVOR: A China Coast Guard spokesperson said that the Chinese maritime police would continue to carry out law enforcement activities in waters it claims The Philippines withdrew its coast guard vessel from a South China Sea shoal that has recently been at the center of tensions with Beijing. BRP Teresa Magbanua “was compelled to return to port” from Sabina Shoal (Xianbin Shoal, 仙濱暗沙) due to bad weather, depleted supplies and the need to evacuate personnel requiring medical care, the Philippine Coast Guard (PCG) spokesman Jay Tarriela said yesterday in a post on X. The Philippine vessel “will be in tiptop shape to resume her mission” after it has been resupplied and repaired, Philippine Executive Secretary Lucas Bersamin, who heads the nation’s maritime council, said
REGIONAL STABILITY: Taipei thanked the Biden administration for authorizing its 16th sale of military goods and services to uphold Taiwan’s defense and safety The US Department of State has approved the sale of US$228 million of military goods and services to Taiwan, the US Department of Defense said on Monday. The state department “made a determination approving a possible Foreign Military Sale” to the Taipei Economic and Cultural Representative Office in the US for “return, repair and reshipment of spare parts and related equipment,” the defense department’s Defense Security Cooperation Agency said in a news release. Taiwan had requested the purchase of items and services which include the “return, repair and reshipment of classified and unclassified spare parts for aircraft and related equipment; US Government
More than 500 people on Saturday marched in New York in support of Taiwan’s entry to the UN, significantly more people than previous years. The march, coinciding with the ongoing 79th session of the UN General Assembly, comes close on the heels of growing international discourse regarding the meaning of UN Resolution 2758. Resolution 2758, adopted by the UN General Assembly in 1971, recognizes the People’s Republic of China (PRC) as the “only lawful representative of China.” It resulted in the Republic of China (ROC) losing its seat at the UN to the PRC. Taiwan has since been excluded from