Wells Fargo to Citigroup: Not so fast
Wells Fargo Corporate HQ
So as I reported last week Citigroup is planning to buy Wachovia Bank. Everything was going smoothly until announcements today that Wachovia was going to be bought out by Wells Fargo Bank.
This came as a shock to Citigroup who negotiated a deal with Wachovia through the FDIC. Citigroup said that the agreement it reached with Wachovia said that Wachovia will not negotiate with anyone other than Citigroup.
This would be a $15.4 billion dollar deal. Now Citigroup might challenge this in court due to the terms of its agreement. The FDIC is also supporting Citigroup in this deal.
It seems that this case will be settled in the courts.
Everyday Wall Street seems to get more and more dysfunctional. All of this occurring on the eve of a House vote on the second bailout bill.
Explore posts in the same categories: EconomyTags: Bailout, Citibank, Citigroup, Economy, News, Politics, Wachovia, Wells Fargo
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St. John's College Democrats 
October 3, 2008 at 11:26 am
There is no guarantee or provision in the bailout to force the firms to use the funds they receive to extend credit to the US economy! We have to defeat this disastrous legislation. Check my site SandySays1.wordpress.com
for some tools to fight it.
October 3, 2008 at 11:29 am
[…] So as I reported last week Citigroup is planning to buy Wachovia Bank . Everything was going smoothly until announcements today that Wachovia was going to be bought out by Wells Fargo Bank . This came as a shock to Citigroup who …[Continue Reading] […]