Citi Sues Over Wachovia - For $60bn!
More in BUSINESS NEWS
back-up- Top Firms Finally Hit By H1N1 Threat
- Top Firm Caught Out By Rogue Traders
- 'It's Not As If They Paid Great Bonuses In The First Place!'
- Top Firm Chain Letter
- Sisters Are Doing It For Themselves
- Dear All - 'I Am Not Interested' In Bank of America Job
- Bank of America, BNP Paribas, Goldman, JPMorgan, Galleon Group
- Old Traders Never Die - The Seance
- Click Here To Register For Free News E-Mail Alerts
- Speculation Mounts About Goldman's Bonus Plans
- Top Boss Tells Church Crowd 'Profit Is Not Satanic'
- Your Views On Bonuses (Poll Results)
- Bank of America 'Is Not A Monarchy'
- Bankers Will Have The Last Laugh On Pay
- 'There Aren't Many People Who Think Charlotte Is A Major Financial Center'
- Top Firm Delivers 'Another Big Disappointment'
- Bank Of America CEO Poll - Incredible Result
- Scruffy Civil Servant Warns Tax Dodgers
- BofA Said To Have Got Another Turn-Down
- Interview With Bernie Madoff
- Top Firm Dismisses Talk Of Further $10bn Writedown
- The Average British Soldier
- Top Firm Puts More Aside For Staff Compensation
- Firms On Alert As Insect 'Infestation' Crashes PC Networks
- Register Now For Free 'Old Traders Never Die' Updates
- Secretary Geithner's Written Testimony On Reform Of Financial System
- ISITC Europe Successfully Introduces New Operating Structure
- Dumb & Dumber - Incredible Details About Lehman Weekend Revealed
- The Cityboy Column
- The Man Bank of America Should Hire As CEO (But Won't)
- Goldman Needs To Give Away $1bn
- Top Firms Said To Have Lost $400m On Hedge Fund
- H1N1 Flu - Have You Got It ? (Quick Test)
- H1N1 Bank Call Center Transcript (You Couldn't Make It Up)
- 'It's Just No Fun Anymore!'
- Top Firm CEO Says He Won't Poach Staff From Rivals
- 'I Hate Recruitment Consultants' - Reader Comments
- Bohemian Bankruptcy
- 'I Hate Recruitment Consultants'
- Mack Attack - The Moment Big John Hit Back
- Compliance Training ? 'The Biscuits Were Good'
- Banker, Hire Thyself
- IT Recruitment - The Smart Way
- And Wall Street's Top Athlete Is...........
- John Mack On Saving Morgan Stanley
- Bankers Taught How To Be Killing Machines
- Banks Given Five More Days To Justify Bonuses
- Billionaire Madoff Investor Found Dead In Swimming Pool
- Top Bailed-Out Execs Averaged $18m Each In 2008
- The Vic Daniels Column - 26/10/09
Related Content
- Citi Rolls Over - 'Pandit Is Not CEO Of The Company' (10/10/2009)
- Deutsche, BofA, Citi, HSBC, Societe Generale, JPMorgan (03/10/2009)
- BofA, BONY, Citi, Goldman Sachs , Lehman Brothers, Natixis (17/09/2009)
In a statement issued Monday, Citi said: 'The Citi / Wachovia transaction would have been signed as announced on Friday, October 3rd, if it had not been subverted by the unlawful conduct of Wachovia, Wells Fargo, and their officers and directors and outside advisers'. Citi is seeking $20bn in compensatory damages, and $40bn in punitive damages.
The US Federal Reserve has asked Citi and Wells Fargo to sort this matter out between them, believing that a lengthy league battle, and the uncertainty it will bring, will not be in the best interests of either Wachovia's shareholders, or the markets generally. Citi has made it clear, however, that, deal or no deal, it still intends to have its pound of flesh once the dust has settled.
In the meantime, there's all sorts of speculation about what a deal could look like. The Financial Times reports that one option apparently under discussion is a deal whereby Citi would take Wachovia branches in some states, and Wells Fargo would take the rest of the bank. A regional solution, on the other hand, could see Citi take Wachovia's branches in California, Florida and New Jersey.
And Bloomberg quotes Pershing Square Capital Management head William Ackman, who supports the break-up option. Speaking at the Value Investing Conference in New York on Monday, Ackman said: 'This company (Wachovia) is worth more, in our view, if it's broken into pieces. It's worth more because of the tax benefits created from the separation. It makes sense for Citi to continue buying the banking subsidiary, and it makes sense for somebody else to buy the holding company'.
Please use the 'E-Mail' button immediately under the article title to send this item to a friend.
Please use the 'E-Mail' button immediately under the article title to send this item to a friend.
