Citibank’s easy takeover of Wachovia for pennies on the dollar with help of Paulson failed – Well Fargo unknowingly may have exposed the biggest corruption
Julia Sanse
Oct. 4, 2008

takeover battle in a fight with Wells Fargo & Co. for control of Wachovia Corp.

The fact is that secretly the Treasury department was helping CitiBank to defy the forces of the free markets and takeover Wachovia for nothing.

Well Fargo broke the chain of corruption by offering legitimate market price for Wachovia.

According to media reports, Citigroup fell as much as 21 percent yesterday in New York trading after Wells Fargo, the biggest U.S. bank on the West Coast, agreed to acquire all of Charlotte, North Carolina-based Wachovia for $15.1 billion. The bid trumped Citigroup's government-backed offer of $2.16 billion for Wachovia's banking operations. ``The taxpayer doesn''t pay a penny'''' for the Wells Fargo deal, Wells Chairman Richard Kovacevich, 64, said yesterday in an interview. His company's bid is superior to Citigroup's also because it's a higher price and the combining banks ``share similar cultures and values.'''' Vikram Pandit, Citigroup's chief executive officer, is counting on the Wachovia purchase to help rebuild after three quarters of losses totaling more than $17 billion. The bank's market value has dropped 38 percent this year to about $100 billion, leaving it below Wells Fargo. If Wells Fargo winds up with Wachovia, it would creep up on its New York rival with deposits of $787 billion, compared with Citigroup's $826 billion. Pandit insisted Citigroup will prevail, citing an exclusive agreement signed by Wachovia. Kovacevich told investors during a conference call the deal with Wachovia is ``solid.''''

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