Wells Fargo (WFC) agreed to pay Citigroup (C) $100 million to settle a lawsuit stemming from Wells Fargo's acquisition of Wachovia in 2008, the companies said Friday.

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.


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stag01987

So this means a $100,000,000 bonus for Vikram Pandit?

November 20 2010 at 4:27 PM Report abuse rate up rate down Reply