Bad Math

How can Wells Fargo pay $15B more for Wachovia than Citigroup when Citigroup had the government backstopping losses on $250B in assets and Wells Fargo has no government support. Either Wells Fargo or Citi/FDIC did their math very very wrong.

a) Either Citi was getting the steal of the century and let it slip through its hands

OR

b) Wells is going to blow itself up 6 months from now

Time will tell...

Posted on October 4, 2008 and filed under Finance.