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Citigroup Surrenders to Wells Fargo in Wachovia Battle

Citigroup Surrenders to Wells Fargo in Wachovia Battle

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?


julieulie julieulie 9 years
I'm not sure what to make of all this -- like michlny, I've been very happy with Wachovia the past few years, so the way I see it, the only place to go from here is down, unfortunately. I sure hope that won't be the case...
indielove indielove 9 years
Wells Fargo is my bank and I hate them.
michlny michlny 9 years
I am totally nervous. I love Wachovia. Their service and perks are amazing. I've been so happy banking there - I know WF will screw it up somehow.
ilanac13 ilanac13 9 years
this is the most confusing deal that they are working on here. it's like buying a house and putting in a bid, and then backing out and putting in the bid again when you think that you're going to lose the house. i don't know what this will really mean for things in the future, but if it means that WF is going to be sued for that much money do you really think that it's worth it? it's soo much more than even the winning bid that who knows what will really happen in the end. i don't have any accounts with Wachovia, but i know that i would probably be a bit more interested in what was happening to my money and investments if i did.
hippiecowgirl hippiecowgirl 9 years
There aren't any of these banks nearby and we don't have anything financed through them. I hope those who do don't have any issues with the transition.
bengalspice bengalspice 9 years
I haven't liked Wachovia since I moved away from Philly, so if anything this drama might force me to move to another bank.
sundrops sundrops 9 years
Savvy, researching this post gave me an idea. Could there be a StockSugar or is that something you could incorporate into your savvy? I think all of us these days are way more aware of stocks than we were a few months ago, and for sure a year ago. I would still like to know more behind them: the history, the daily goings on, why there's a DOW and why there's a (insert other abbreviation), why they are SO volatile according to the news, how they are actually bought and sold, etc. in plain Sugar english : ) .
carak carak 9 years
my bf banks with Wachovia and has a mortgage with Wells Fargo. i'm not sure what he's going to do yet, but i know we've had a TERRIBLE time with Wells Fargo. their customer service is awful & they don't mail things to you that they say they are, i/e bills & letters. you'll get a late notice 2 months later when you KNOW that check had been deposited because it came out of your bank account. then you switch to autodeduct payments & they randomly decide one month to not take it out.
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