Fewer Than 170 Offices Remain Candidates for Consolidation

Five post offices in Georgia remain on the list- three in Atlanta, one in Port Wentworth and one in Macon.

/PRNewswire/ -- Fewer than 170 offices remain under review for possible consolidation under the U.S. Postal Service station and branch consolidation initiative.

Today's announcement updates a review process begun earlier this summer that initially examined about 3,300 stations and branches in urban and suburban areas across the country, focusing on facilities in relatively close proximity to one another. The initiative looks to determine where consolidations might be feasible without compromising customer access to postal services.

The Postal Service receives no tax subsidy to operate the nation's mail service. Revenues from the sale of postage, products and services fund its operations. At the conclusion of its 2009 fiscal year in October, the Postal Service reported a loss of $3.8 billion.

"To shore up its finances, the Postal Service is looking at every aspect of its business to economize. Reducing over-capacity in retail and delivery operations is a smart business move. Every effort is being made to maintain and improve customer access to postal services," said Steven J. Forte, senior vice president, Operations.

With over 36,000 Post Offices, stations, branches, contract and community post offices, the Postal Service has the largest retail network in the United States. An additional 56,000 locations such as supermarkets, drug stores, and other retailers sell postage and selected postal services. Nearly 18,000 ATMs dispense sheets of stamps. In addition postage can be purchased online at usps.com and printed on personal computers.

As part of the consolidation process, the Postal Service has filed periodic updates with the Postal Regulatory Commission identifying the retail stations and branches that remain under consideration. The filing does not represent a final decision on consolidation. At this point no facility-specific final decisions have been made as a result of this initiative.

New initiatives also are being undertaken to build revenue, including Flat Rate Priority Mail pricing and the introduction of greeting cards to 500 select Post Offices.

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Postal Service Updates Station and Branch Consolidation Initiative

17 Georgia branches are still on the list including 1 in Athens, 13 in Atlanta, 2 in Macon and 1 in Port Wentworth.


PRNewswire -- The U.S. Postal Service today updated the list of retail stations and branches that remain under review for possible consolidation, with only 241 offices still under review.

Unlike most federal agencies, America's national mail system receives no tax subsidy for operating expenses and relies on the sale of postage, products and services to fund its operations. The Postal Service reported a loss of $3.8 billion at the end of its 2009 fiscal year in October.

"To shore up its finances, the Postal Service is looking at every aspect of its business to economize. Reducing over-capacity in retail and delivery operations is a smart business move. Every effort is being made to maintain and improve customer access to postal services," said Steven J. Forte, senior vice president, Operations.

Today's announcement updates a review process begun earlier this summer that initially examined about 3,300 stations and branches in urban and suburban areas across the country, focusing on facilities in relatively close proximity to one another. The process is to determine where consolidations might be feasible without compromising customer access to postal services.

With over 36,000 Post Offices, stations, branches, contract and community post offices, the Postal Service has the largest retail network in the United States. An additional 56,000 locations such as supermarkets, drug stores, and other retailers sell postage and selected postal services. Nearly 18,000 ATMs dispense sheets of stamps. But customers do not have to visit a physical building to purchase products and services; postage can be bought at usps.com and printed on personal computers.

As part of this process, the Postal Service has filed periodic updates with the Postal Regulatory Commission, identifying the retail stations and branches that remain under consideration. The filing does not represent a final decision on consolidation. To date, no facility-specific final decisions have been made as a result of this initiative.

New initiatives also are being undertaken to build revenue, including Flat Rate Priority Mail pricing. If it fits in the box, it ships for one low price regardless of U.S. destination or weight. Another recent revenue building initiative introduced greeting cards to 500 select Post Offices.

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Citi and Wachovia Reach Agreement-In-Principle for Citi to Acquire Wachovia’s Banking Operations in an FDIC-Assisted Transaction

BUSINESS WIRE)--Citi (NYSE: C) today (September 29, 2008) announced it has reached an agreement–in-principle to acquire all of the banking subsidiaries of Wachovia Corporation (NYSE: WB), creating the largest U.S. bank by total deposits.

Wachovia will remain a public company and retain its asset management, retail brokerage, and certain select parts of its wealth management businesses, including the Evergreen and Wachovia Securities franchises. Going forward, Wachovia expects to have adequate capital to support its remaining businesses, an appropriate allocation of tangible equity, and certain tax assets that will be recognized immediately.

Under the terms of the agreement-in-principle, Citi will pay Wachovia approximately $2.16 billion in stock and assume Wachovia senior and subordinated debt, totaling approximately $53 billion.

Citi will acquire more than $700 billion of assets of Wachovia’s banking subsidiaries, and related liabilities. The Federal Deposit Insurance Corporation (FDIC) has agreed to provide loss protection in connection with approximately $312 billion of mortgage-related and other Wachovia assets. Citi is responsible for the first $30 billion of losses on this portfolio, and expects to record these expected losses under purchase accounting upon closing of the transaction. Citi is also responsible for the next $12 billion in losses up to a maximum of $4 billion per year for the next three years. Citi has also agreed to issue to the FDIC preferred stock and warrants with a combined value of approximately $12 billion. The FDIC has agreed to be responsible for any further losses on this portfolio.

The transaction, which has been approved by the Boards of Directors of both companies, is subject to: approval by Wachovia’s shareholders; to the occurrence of the closing by December 31, 2008; definitive documentation; regulatory approvals; and other customary closing conditions.

The deal is expected to be accretive to Citi’s earnings from year one excluding a total of $3.7 billion in pre-tax restructuring charges for severance over the next four years, and expected to be fully accretive in 2010.

Citi expects to raise $10 billion in common equity in connection with this transaction and reduce its quarterly dividend to 16 cents per share, effective immediately, to maintain the company’s strong capital position. On a pro forma basis for the second quarter ended June 30, 2008, Citi’s Tier 1 capital ratio is expected to be 8.8% assuming completion of the transaction.

“The transaction is extremely attractive from a strategic perspective. It will deliver the combined capabilities of two powerful organizations to our customers and shareholders, providing meaningful EPS accretion and downside loss protection,” said Vikram Pandit, Chief Executive Officer, Citi. “It will augment our access to stable funding and liquidity, and will accelerate our efforts to establish Citi as the world’s leading global financial institution. Citi will have more than $600 billion in deposits in the U.S., giving us about a 9.8% market share. Our total deposits will be $1.3 trillion globally, $350 billion more than our next largest U.S. competitor, making us one of the world's largest core deposit-funded financial institutions. Moreover, it is essential that Wachovia, a company we deeply respect, maintain a strong presence in Charlotte, N.C.”

“Our core businesses continue to perform well but amid uncertain markets and a fast-changing industry landscape, we found in Citi a strong partner to preserve the stability and quality of our banking franchise,” said Robert Steel, CEO, Wachovia. “We are pleased to meet these key goals, as well as advance our legacy of innovative thinking, best-in-class customer service, and growth opportunities for our colleagues.”

Wachovia has a strong, attractive customer base, talented employees, and its retail bank footprint is highly complementary with that of Citi, with just 31% of Wachovia branches located in existing Citi markets. The transaction propels Citi to a top three ranking in seven metropolitan statistical areas (MSAs): New York, Miami, Atlanta, Washington D.C., Las Vegas, Charlotte, and San Francisco.

At the completion of the transaction, Citi will have: about 4,300 branches in the U.S. and approximately another 3,300 throughout the world; and 28,000 fee-free ATMs in the U.S. As there is little overlap between the two footprints, Citi expects to close less than 5% of the combined branches. In addition, Citi will benefit from Wachovia’s leading technology platform, including the opportunity to expand its award-winning online banking platform, and proven integration capabilities.

The transaction also brings a strong, highly complementary U.S. cash management platform to Citi’s leading international Global Transaction Services business; a strong U.S. mid-market corporate banking franchise; and, a small, successful private banking business that Citi intends to integrate into its existing Global Wealth Management business.

In addition, Citi expects to realize more than $3 billion of annualized expense synergies through the consolidation of overlapping functions. Following the closing of the transaction, Citi expects to complete the integration of the retail banking operations by year-end 2010.

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