Wells Fargo Will Pay Citigroup $100 Million to Settle Wachovia Claim

Wells Fargo (WFC) agreed to pay Citigroup (C) $100 million to settle a lawsuit stemming from Wells Fargo's acquisition of Wachovia in 2008, the companies said Friday.

The agreement settles "all claims related to this dispute," the companies said Friday.

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Wells Fargo acquired Wachovia in $12.7 billion in 2008 without backing from the Federal Deposit Insurance Corp., Bloomberg News reported. Citigroup had offered $2.16 billion for Wachovia's banking operations, though that bid did have FDIC backing, the wire service said.

Citigroup sought as much as $80 billion in damages for what it said was a breach of contract. Since completing the acqusition, Wells Fargo added about $450 billion in deposits through Wachovia, Bloomberg News said.

Citigroup required $45 billion in government bailout funds subsequent to the failed bid, and still has an outstanding balance. Wells Fargo has repaid the $25 billion in received in government funds, according to Bloomberg.