Financial Roundup: 3 Big Deals Official, ING Reorganizies, Citi Bosses Lose Out, the Skinny on Fannie Mae
Three big deals done — It’s official. Bank of America has taken over Merrill Lynch, making it the largest bank in the U.S. with assets of $2.7 trillion. Wells Fargo & Co. owns Wachovia Corp. and PNC Financial Services Group has bought Cleveland’s National City Corp. [Source: The Wall Street Journal]
ING jockeys for recovery — Holland’s ING Group NV has split up withs wealth management business with an eye towards a recovery in investments. Split apart are the bank’s retirement services, annuities, insurance and investments. [Source: American Banker]
And no corporate jets, either — Under federal pressure, Citigroup CEO Vikram Pandit and Chairman Win Bischoff are forgoing their 2008 bonusses since the bank got $45 billion from the government. Corporate jet use will also be restricted. [Source: Chicago Tribune]
Adams National merges with W. Va. bank – West Virginia-based Premier Financial Bancorp is buying Abigail Adams National Bancorp based in Washington. The $10.9 million merger will help the D.C. bank survive the financial crisis. [Source: The Washington Post]
The skinny on Fannie Mae – A lengthy magazine article claims that Fannie Mae and Freddie Mac were not major culprits in the meltdown, but had been under seige for their successes, big profits, hard-driving CEOs and special status as Government Sponsored Enterprises. [Source: Vanity Fair]
Peter Galuszka is a Virginia-based journalist with more than three decades of experience, including 15 years at BusinessWeek, during which he was twice Moscow Bureau Chief and International News Editor in New York.
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