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NEW YORK — Wells Fargo & Co. has agreed to pay $100 million to Citigroup Inc. to settle a dispute related to its acquisition of Wachovia Corp. in October 2008, at the height of the financial crisis.
Wachovia was teetering on the brink of collapse from bad real estate loans when it initially agreed to be bought by Citigroup in a deal supported by the U.S. government. Days later, Wells Fargo swooped in with a sweeter deal and snatched Wachovia away from Citigroup. An irate Citi sued Wells soon thereafter, leading to the settlement announced Friday.
Citigroup, in its lawsuit filed in the New York State Supreme Court in Manhattan, accused Wells and Wachovia of breach of contract and sought $60 billion in damages.
