Citigroup waved a white flag late Thursday as it bowed out of the battle with Wells Fargo over which bank would buy ailing Wachovia. Early last week, Wells Fargo had backed out of talks as the federal government brokered a deal that arranged for Citigroup to pay $2.2 billion for Wachovia’s banking operations and $12 billion in stock to the FDIC. Later in the week, after the deal with Citi had been agreed upon, Wells Fargo came back and offered $15 billion in stock to buy all of Wachovia.
With Citi now out of the picture it seems likely Wachovia and Wells Fargo will join forces, though the drama isn't over. Citigroup has sued Wells Fargo for $60 billion in "compensatory and punitive damages." According to The New York Times, both banks were attracted to Wachovia for its retail banking operations "widely regarded as among the best in the business."
Wachovia customers, are you worried that the quality in service will deteriorate with a Wells Fargo merger?