No wonder Citi are hacked off Monday, October 06, 2008
Image via WikipediaIs it any wonder that Wachovia shareholders and the Federal Deposit Insurance Corporation are reportedly pleased that Wells Fargo stepped in to buy Wachovia from under Citigroup's nose - likewise is it surprising that Citi are miffed? According to reports
Citigroup said last Monday it had reached a preliminary agreement to pay $2.2bn for Wachovia’s banking assets, in a deal that included an FDIC guarantee for any losses beyond $42bn on a $312bn mortgage portfolio. But Wells Fargo said on Friday it signed an agreement with Wachovia to buy the whole of the company for $15bn without any government guarantees.
Here's the kicker - Citi now want to sue Wachovia for $60bn for breaking an exclusivity agreement on the deal. Hmmmmm. Might that suggest that they knew they were getting a steal if those are their perceived damages.