Tuesday, March 31, 2015

Could U.S. block Wells Fargo from sponsoring Wachovia Center?

As Wells Fargo considers whether to take on sponsorship of Philadelphia's Wachovia Center, critics in Congress are attacking government-subsidized banks' big-league sponsorships.

Could U.S. block Wells Fargo from sponsoring Wachovia Center?

John "Super Squibb" Squibb of Berlin. N.J., won this year´s Wing Bowl by eating 203 chicken wings. (Alejandro A. Alvarez/Staff Photographer)
John "Super Squibb" Squibb of Berlin. N.J., won this year's Wing Bowl by eating 203 chicken wings. (Alejandro A. Alvarez/Staff Photographer)

Nine big "banks that received government funds may face questioning by Congress for spending $872 million on stadium sponsorships," writes Bloomberg this morning.

The banks, including Philadelphia indoor-arena sponsor Wachovia (now part of Wells Fargo), PNC, Citigroup, JPMorgan, among others, "received a total of $154 billion from the $700 billion U.S. bailout and are spending a combined $872 million for naming rights. U.S. banks have had $745 billion in losses and writedowns since the subprime mortgage crisis began in 2007.

Sponsorship was supposed to attract customers but has become a political "liability" and could even be voided by Congress, according to the report. To read it, click here:
http://www.bloomberg.com/apps/news?pid=20601079&sid=aRcdswO7S3m0&refer=home

About this blog

PhillyDeals posts raw drafts and updates of Joseph N. DiStefano's columns and stories about Philly-area finance, investment, commercial real estate, tech, hiring and public spending, which he's been writing since 1989, mostly for the Philadelphia Inquirer.

DiStefano studied economics, history and a little engineering at Penn, taught writing at St. Joe's, and has written the book Comcasted, more than a thousand columns, and thousands of articles, and raised six children with his wife, who is a saint.

Reach Joseph N. at JoeD@phillynews.com or 215 854 5194.

Joseph N. DiStefano
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