Fed Approves Wells Fargo Purchase of Wachovia
The Federal Reserve’s board of governors on Sunday approved Wells Fargo’s $11.7 billion purchase of Wachovia, removing the last key regulatory hurdle for the deal. On Friday, federal antitrust regulators backed the acquisition by San Francisco-based Wells Fargo of Wachovia.
Citigroup had initially offered to buy the Charlotte, North Carolina-based bank for $2.1 billion in a deal brokered by the Federal Deposit Insurance Corp. Days later, the board of Wells Fargo agreed to an all-stock offer worth $11.7 billion. Citigroup walked away from the deal on Thursday, but is still seeking $60 billion in damages for breach of contract.
The Federal Reserve released a statement announcing the approval of the deal, which includes Wachovia’s banking business and all other units. Wachovia shareholders must now approve the deal. Wells Fargo provides stability and liquidity that is needed for these difficult economic times. The popular Wells Fargo mortgage products include the FHA mortgage, conventional home loans, VA loans and home equity loans. Refinancing and purchase mortgage loans are available for qualified borrowers.
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