Friday, October 03, 2008

Wells Fargo is the right buyer

Wells Fargo's bid for Wachovia is in the best interests of the U.S. financial system. Well's business is branch banking for consumers and small businesses and they are unequivocally among the best at this business among large banks. Wachovia was once part of that upper tier until Ken Thompson's disasterous acquisitions. Citibank is run by investment bankers who want the deposit base of an expanded retail bank, but they have limited talent to run the business. Their New York branch banking system is a shoddy, under invested outfit despite being, by legacy, one of the market leaders and their U.S. technology is standard at best, sub-par by some measures. Their call system for branch banking, even in mid-day, is routed to India which leads to bizarre conversations(are you a gold customer or a silver customer sir?) and of course just protocol reading by the representatives, no real human interaction.

Wells Fargo would maximize Wachovia's potential and more importantly assure that the communities it serves in its southeastern home territories would be well served, in a way that inspires confidence in our financial system. Go Wells Fargo.


Anonymous Anonymous said...

You're right. Citi, as a New York bank in the South, would lose deposits in a massive way. They can't manage this.

3:24 PM  

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