Citigroup, one of the world's largest financial services companies, offered to buy the banking assets of Wachovia for $2.1 billion on September 29, 2008, and absorb over $42 billion in losses the bank Wachovia suffered due to the global credit crisis.NYT: Citigroup Buys... (September 29, 2008)
In a "surprise bid," Wells Fargo agreed to purchase all of Wachovia for $15 billion in stock on October 3, 2008. A New York judge temporarily stopped the Wells Fargo-Wachovia deal the following day, pending legal proceedings. Citigroup alleges a breach of contract by Wachovia and is suing Wells Fargo for $60 billion in damages.NY Times: Citigroup Says Judge Suspends Wachovia Deal (October 4, 2008)
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Fast Facts
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Under deal, Citigroup would have absorbed up to $42 billion in losses and FDIC would have covered any losses above that levelCBS: Fight Over Wachovia Intensifies (October 3, 2008)
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Citigroup had "exclusivity agreement" with Wachovia, to expire October 6Bloomberg: Citigroup Says Court Orders Continued... (October 5, 2008)
