Victors in Citigroup, Wachovia, Wells Fargo Mess: Lawyers

Citigroup may have gotten a NY judge to block Wells Fargo from taking over Wachovia on Saturday, but that was overturned by an appellate court judge yesterday! Apparently a NY judge can't issue an order from outside of NY--and the judge was in Connecticut at the time (it's like a mistake that would happen on Law & Order!). The NY Times' Dealbook tries to explain the lawsuits piling up--Citigroup is suing Well Fargo for interfering with its federally-arranged $2+ billion purchase of Wachovia, while now Wachovia is suing Citigroup claiming that their agreement is not exlusive and its can purse the $15+ billion offer from Wells Fargo. Bloomberg News reports that squabble could mean Wachovia gets split up between Citigroup and Wells.

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By Jen Chung in News on October 6, 2008 8:09 AM

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Mr Mel

If Wells Fargo is willing to pay 15+ billion and Citi 2 billion, what's the problem?If Citi can't meet the price , they don't get it. The fact the government brokered the deal with Citi shouldn't be a problem, Wells Fargo should be able to buy at the 15+ which appears to be the right price. The courts are going to screw up this deal.