Wells Fargo Will Pay Citigroup $100 Million to Settle Wachovia Claim
Nov 19th 2010 5:46PM
Updated Nov 19th 2010 7:37PM
The agreement settles "all claims related to this dispute," the companies said Friday.
Wells Fargo acquired Wachovia in $12.7 billion in 2008 without backing from the Federal Deposit Insurance Corp., Bloomberg News reported. Citigroup had offered $2.16 billion for Wachovia's banking operations, though that bid did have FDIC backing, the wire service said.
Citigroup sought as much as $80 billion in damages for what it said was a breach of contract. Since completing the acqusition, Wells Fargo added about $450 billion in deposits through Wachovia, Bloomberg News said.
Citigroup required $45 billion in government bailout funds subsequent to the failed bid, and still has an outstanding balance. Wells Fargo has repaid the $25 billion in received in government funds, according to Bloomberg.