Citi Bows Out, Wells Fargo Gets Wachovia

10-10-2008

Citigroup said late Thursday that it will not try to block a merger between Wachovia and Wells Fargo, reports The New York Times.  However, the bank said it would continue to seek $60 billion in legal damages after the Wachovia 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 means that Wachovia will likely merge with Wells Fargo, concentrating power within the American banking industry to just a few firms.

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