Citigroup Sues Wells, Wachovia for $60B

Deal would award $225M in severance, Citi charges—a bailout no-no
By Ambreen Ali,  Newser User
Posted Oct 6, 2008 1:02 PM CDT
The $60 billion lawsuit alleges that Citigroup has the right to some of Wachovia's assets.   (AP Photo/Chuck Burton)
camera-icon View 2 more images

(Newser) – Citigroup has sued Wells Fargo and Wachovia for $60 billion in damages, alleging the latter breached an exclusivity agreement in agreeing to its sale to Wells. Wells is also charged with violating Citi's right to purchase some of Wachovia's assets under a previous deal, reports Bloomberg. The Wells agreement would also trigger $225 million in executive severance packages, Citigroup says—a bailout no-no.

The Citi-Wachovia deal would have been sealed by Friday had it “not been subverted by the unlawful conduct of Wachovia, Wells Fargo, and their officers and directors and outside advisors,” Citigroup said in a statement today after filing the complaint in New York Supreme Court.