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Wells Fargo agrees to buy Wachovia for $15B, Citigroup Demands Deal be Cancelled

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Wachovia says it agreed to be acquired by San Francisco-based Wells Fargo & Co. in a $15.1 billion all-stock deal. But Citigroup now demands that Wachovia abide by the terms of its earlier deal to buy Wachovia's banking operations.

The clash sets up a battle over who will win Charlotte, N.C.-based Wachovia.

The Citigroup deal would have been done with the help of the Federal Deposit Insurance Corp., but the Wells deal would be done without it. The head of the FDIC said the agency is standing behind the agreement it made with Citigroup...


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{"commentId":3288467,"authorDomain":"newsguru"}

It better that Wells Fargo buy them since they've chosen to forgo government assistance and the government assistance that Citigroup received was not highly publicized.

{"commentId":3288467,"threadId":"377714","contentId":"1950793","authorDomain":"newsguru"}
  • 2 votes
Reply#1 - Fri Oct 3, 2008 11:54 AM EDT
{"commentId":3293748,"authorDomain":"chum"}

Yeah, the Wells Fargo plan sounds better for Wachovia. I'm not surprised Citigroup is objecting. 

{"commentId":3293748,"threadId":"377714","contentId":"1950793","authorDomain":"chum"}
  • 1 vote
#1.1 - Fri Oct 3, 2008 2:44 PM EDT
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{"commentId":3289297,"authorDomain":"tory-decker"}

So how is it that the FDIC just so happens to be behind all of these buyoffs?

{"commentId":3289297,"threadId":"377714","contentId":"1950793","authorDomain":"tory-decker"}
    Reply#2 - Fri Oct 3, 2008 12:17 PM EDT
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