Acquisition of Wachovia .282008.29 History of Wells Fargo

a former wachovia branch converted wells fargo in fall of 2011 in durham, north carolina.

during financial panic of september 2008, wells fargo made bid purchase troubled wachovia corporation. although @ first inclined accept september 29 agreement brokered federal deposit insurance corporation sell banking operations citigroup $2.2 billion, on october 3, wachovia accepted wells fargo s offer buy of financial institution $15.1 billion.

on october 4, 2008, new york state judge issued temporary injunction blocking transaction going forward while situation sorted out. citigroup alleged had exclusivity agreement wachovia barred wachovia negotiating other potential buyers. injunction overturned late in evening on october 5, 2008, new york state appeals court. citigroup , wells fargo entered negotiations brokered fdic reach amicable solution impasse. negotiations failed. sources citigroup unwilling take on more risk $42 billion have been cap under previous fdic-backed deal (with fdic incurring losses on $42 billion). citigroup did not block merger, indicated seek damages of $60 billion breach of alleged exclusivity agreement wachovia.

on october 9, citigroup ended effort block sale of wachovia wells fargo, though still threatened sue both $60 billion.

the merger created coast-to-coast super-bank $1.4 trillion in assets , 48 million customers, , expanded wells fargo s operations 9 eastern , southern states. there big overlaps in operations in california , texas, less in nevada, arizona, , colorado. in contrast, citigroup deal have resulted in substantial overlap, since both banks operations heavily concentrated in east , southeast. proposed merger approved federal reserve $12.2 billion all-stock transaction on october 12 in unusual sunday order. acquisition completed on january 1, 2009.