Wells Fargo to purchase Wachovia
- October 3, 2008
Wells Fargo & Co. has a reached a deal to buy all of Wachovia Corp. for $15.1 billion, just four days after Citigroup Inc. had announced it would buy Wachovia’s banking assets.
Wachovia apparently rejected the deal, in which Citigroup would have spent $2.1 billion to purchase its banking operations, in favor of the purchase of the entire company. San Francisco-based Wells Fargo announced Friday morning the deal would not need support from the Federal Deposit Insurance Corp. or any government agency.
The agreement has been approved by directors of both companies, but is subject to Wachovia shareholder approval. (The New York Times)
University of Richmond is one of 1,000 schools affected by Wachovia Corp.’s decision to partially freeze credit withdrawls from an investment fund. UR has $100 million invested with Short Term Fund. Wachovia, trustee of the fund, has announced it will close the fund and establish a process to liquidate it. At first, schools were only allowed to withdraw 10 percent of their money, that has since risen to 37 percent. UR officials said they are concerned but understand the need for the measure during the credit crunch. (Richmond Times-Dispatch)
The University of Virginia’s College at Wise also had investments in the fund, but U.Va. Wise officials would not reveal how much money was invested in the fund. (Bristol Herald-Courier)