Citi Breaks Off Wachovia Talks With Wells, Sans Agreement

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Citing "dramatic differences in the parties' transaction structures and their views of the risks involved," which apparently made a split of WB "impossible." Vikram still wants that $60 billion in damages, though apparently C is "still willing to compete with an FDIC-backed bid," according to Reuters. Citi issued a press release just now, and noted:

"We are proud to have been part of an historic transaction that was supported by all of the federal banking agencies and the Secretary of the Treasury, after consultation with the President, and that we carefully designed to avoid systemic stress and to advance the interests of our shareholders.
We stood by while others walked away. Now, our shareholders have been unjustly and illegally deprived of the opportunity the transaction created."

Normally, we'd make fun of Vickles for this, and obviously some people are going to be all "well the Wells deal was better for Wachovia," but what the fuck, how about a little gratitude from the WB, which sort of had its ass saved by Citi a few weeks ago, without whom it probably would've gone under?
Uncle Pandit added:

"We did not seek the Wachovia transaction; Wachovia brought it to us. Our focus remains on capitalizing on our global strengths. We will continue to apply the same discipline we employed in this and other recent transactions to future acquisition opportunities. We will redouble the focus on our five core businesses and continue to demonstrate strong capital and risk management supported by continuously improving expense control. We are committed to affirming Citi's position as a leading global financial institution.
"There has been strong affirmation of Citi's global universal banking model. Citi has a large and diversified deposit base, a strong capital ratio, solid liquidity and tremendous assets. This strength, as well as the company's commitment to managing risk, has made Citi a favored counterparty during this period."

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