Wells Fargo Wachovia
Wells Fargo made an offer to purchase Wachovia Bank for $15 billion on October 3, 2008.1 The purchase came as a surprise; earlier in the week, Wachovia had tentatively agreed to a $2.2 billion purchase by Citigroup. The sale of Wachovia to Wells Fargo was temporarily halted by a New York judge on October 4, 2008, pending legal proceedings. Citigroup alleges a breach of contract and is suing Wells Fargo for $60 billion in damages.2 On October 9, Citigroup ended all negotiations to purchase Wells Fargo3 Wells Fargo then closed the deal to purchase Wachovia for $11.7 billion dollars.4
Fast Facts
- Deal was for $15 billion in stock1
- Wells Fargo would absorb Wachovia's losses without FDIC coverage1
- Court order by Judge Charles Ramos temporarily stops sale1
- Citigroup claims it has "exclusivity agreement' with Wachovia that supercededs Wells Fargo's deal1
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Citigroup Wachovia | Wells Fargo | Citigroup Wells Fargo | Lehman Bankruptcy | AIG Bailout | Lehman Brothers Citigroup | FDIC | Henry Paulson | Wachovia Corporation | Wells Fargo | Credit Crisis | Subprime Mortgage Bailout | FDIC Bank Watch List
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