Citigroup Withdraws From Wells Fargo Negotiations

9 10 2008

Citigroup said late Thursday that it will not try to block a merger between Wachovia and Wells Fargo, but that it would continue to seek $60 billion in legal damages after the Charlotte-based bank spurned a $2.2 billion deal proffered by Citigroup at the government’s behest.

In a lawsuit filed in New York state court on Monday — but put on hold because of the now recently ended discussions — Citigroup said that it was seeking at least $60 billion in compensatory and punitive damages.

The decision by Citigroup to withdraw from discussions with Wells Fargo marks the resumption of a court battle between the two big banks, one that began in a flurry of hurried motions late last week. Last week, Citigroup agreed to buy Wachovia’s banking operations for about $2.2 billion, in an eleventh-hour deal brokered by the federal government.




Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )


Connecting to %s

%d bloggers like this: