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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

(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.

The $60 billion lawsuit alleges that Citigroup has the right to some of Wachovia's assets. (AP Photo/Chuck Burton)

Citigroup alleges that Wachovia violated an exclusivity agreement when it struck a deal with Wells Fargo. (AP Photo)

Wells Fargo is offering $225 million in severance packages to Wachovia execs, Citigroup says. (AP Photo/Chuck Burton, FILE)

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Citigroup Sues Wells, Wachovia for $60B

Deal would award $225M in severance, Citi charges—a bailout no-no

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Citi May Seek to Recover Wachovia Deal

Bank could make a better offer; may sue Wells Fargo

Feds Give Green Light to Wells Fargo-Wachovia

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Wells, Citigroup Call Truce in Wachovia Battle

Fed brokers cool-off, banks may be working out carve-up deal

Dow Down 700, Hits 4-Year Low

'This is just about fear right now'

Feds Work to Cement Wachovia Deal

Citi and Wells Fargo would each get a piece of the struggling bank

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Citigroup Sues Wells, Wachovia for $60B

Deal would award $225M in severance, Citi charges—a bailout no-no

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OTHER STORIES ON OUR RADAR

Citigroup • Wachovia • Wells Fargo • lawsuit • financial crisis

MOST POPULAR STORIES

[ By Views ]

[ By Comments ]

More Newser Stories

Citi May Seek to Recover Wachovia Deal

Bank could make a better offer; may sue Wells Fargo

Feds Give Green Light to Wells Fargo-Wachovia

Citigroup plans to sue over breach of contract, but will not interfere

Wells, Citigroup Call Truce in Wachovia Battle

Fed brokers cool-off, banks may be working out carve-up deal

Dow Down 700, Hits 4-Year Low

'This is just about fear right now'

Feds Work to Cement Wachovia Deal

Citi and Wells Fargo would each get a piece of the struggling bank

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Newser By Users

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