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Wachovia to Merge with Wells Fargo Instead of Citigroup


After last Monday's press releases including this one from the FDIC, it looked like Citigroup's acquisition of Wachovia banking operation was a done deal. It turns out not to be the case. It was just reported that the Citigroup deal is dead, and now Wells Fargo will merge with Wachovia. This merger involves all of Wachovia's operations including its banking operations, its brokerage business and its investment management division. Also unlike the Citigroup deal, this one will require no financial assistance from the FDIC.

Update: It looks like Citigroup is not happy with this turn of events, and they're demanding that Wachovia abide by the terms of its earlier deal in which Citigroup would buy Wachovia's banking operations (see article at Yahoo Finance).

  Tags: Wells Fargo Bank, Wachovia Bank