First, it appeared as though Citibank would win the rights to take over Wachovia. Now, we learn that Wells Fargo has made a more lucrative bid for Wells Fargo. Wells Fargo is looking to buy Wachovia for $15.1 billion.
Citibank isn't liking this one bit, and claims that they had an exclusivity arrangement with Wachovia.
The Wells Fargo offer sent markets higher, since it shows confidence in the market to sort things out, but Citibank isn't likely to let this issue rest.
UPDATE:
The FDIC is now announcing that they are backing Citigroup in their bid to buy Wachovia. This is going to head to court, which is the last thing that the financial markets need right now. It also begs the question as to why FDIC is pushing Citi over Wells Fargo and how and why Wells Fargo thought that Wachovia was worth more than Citi was proposing. If Wachovia is as bad off as claimed, why the higher bid? Someone's accounting is off here - and it could be any of the following: Citi, FDIC or Wells Fargo.
I don't like the idea of having the FDIC dictate who gets Wachovia, seeing how they pushed WaMu to be bailed out by JPMorgan Chase.
UPDATE:
MSNBC has more on the bank brawl.
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