File this under “tell me something I don’t know”.
“Citigroup (C) is in talks to buy a regional bank that operates in areas that overlap with the New York financial-services company’s focus in the U.S. Northeast, California and Texas, people familiar with the situation told The Wall Street Journal. The move comes less than a month after Citi walked away from Wachovia (WB), which is trying to close its purchase by Wells Fargo (WFC), the Journal reported. The identity of the target bank couldn’t be determined, the paper said. But it said Citi Chief Executive Vikram Pandit wants to deepen the bank’s U.S. deposit base, which is a cheap and reliable funding source.”
In a post last month after talking to people at Citi in regards to the then Goldman Sachs (GS) / Citi rumors “So, the question then becomes. Where does Goldman fit? Answer? It doesn’t. Citi wants deposits and neither Goldman nor Merrill (MER) have any. Sources at Citi indicated to me if it does a deal it will be with a depository institution that has minimal branch over lap with current operations, not a broker.”
Citi buying a regional bank isn’t news. It just isn’t…If this was a secret, then I was the last to know it was a secret…
Disclosure (“none” means no position):Long GS, none
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One reply on “Citigroup To Buy Regional Bank: No Kidding!”
Citi will merge with Goldman Sachs in the future. It is just a matter of time.
I think Valley National may be the current purchase.