Last week, it was announced that Wachovia was to be acquired by CitiGroup. The deal was to have the assistance of the FDIC and the Treasury.
Today, in a complete change of direction, Wachovia announced that they were instead going to be acquired by Wells Fargo. The new deal, worth a reported $15.1 Billion will be all stock and be completely free of any assistance from the FDIC or the Treasury.
I’m no expert, but I think that is good news. Wells Fargo is a pretty good bank. And I really like that they aren’t going to be using any assistance from the Government. The Government has already done more than enough if you ask me and with the eminent bail out bill, the less other assistance they are giving the better we’ll all end up.
UPDATE: It seems that Citi is a little angry about the whole thing and is claiming that they had an exclusivity contract with Wachovia. Citi is demanding that the merger between Wells Fargo and Wachovia be nulled.