PhillyTablet Inquirer Daily News
Mobile
Home Delivery
philly.com
email
font size
comments
2
options
 
Monday, October 6, 2008

Citi: Wells deal gives Wachovia bosses $225M 'golden parachute'

  Citigroup has filed a state lawsuit in New York against Wachovia Corp., trying to stop its planned marriage with Wells Fargo & Co. Citi vs Wachovia lawsuit here.

  1. CITI SAVED WACHOVIA: "Had Citigroup not stepped up" and offered to take over Wachvoia Corp.'s "threatened" bank business on Sept. 29, "Wachovia would have failed the following day," with "devastating implications for the stability and security of the financial markets."

  2. WACHOVIA FOOLED CITI: Wachovia's bosses and directors (including the only Philadelphian on its board, Aramark Corp. boss Joseph Neubauer, an investor in this Web site) "knowingly and deceptively" crafted an "illegitimate" deal with Wells Fargo behind Citi's back.

  3. WELLS BOUGHT STEEL: "The illegitimate Wells Fargo deal -- unlike the Citigroup agreement to acquire Wachovia's commercial banking subsidiaries and other businesses -- triggered the golden parachutes of Wachovia CEO Robert Steel and its other senior executives, which would enable these executives to bestow upon themselves a $225 million windfall."

   (Citi isn't saying: whether its own executives, including former Goldman Sachs boss, U.S. Treasury Secretary and Democratic Party adviser Robert Rubin, have agreed to cancel their own multi-million-dollar change-of-control severance packages.)
Posted by Joseph N. DiStefano @ 3:40 PM  Permalink | 2 comments
Comments   
  • 0 like this / 0 don't   •   Posted 4:58 PM, 10/06/2008
    (Citi isn't saying: whether its own executives, including former Goldman Sachs boss, U.S. Treasury Secretary and Democratic Party adviser Robert Rubin, have agreed to cancel their own multi-million-dollar change-of-control severance packages.) WE ALL KNOW THEY AIN'T CANCELING SH*T!!!!!!!!!!
    — cusoraider
  • 0 like this / 0 don't   •   Posted 4:59 PM, 10/06/2008
    it's disgusting....but that's capitalism at it's finest..so no one can complain about it....good for them they played the game and came out on top..Not saying it's fair but I respect their hustle.
    — Breath EZ


2 comments
About Joseph N. DiStefano
Joseph N. DiStefano writes this blog to feed his PhillyDeals column in the Philadelphia Inquirer. Joe has been a member of Bloomberg LP’s New York Finance Team, wrote the book “Comcasted,” taught writing at St. Joseph’s University, and studied economics and history at Penn. Reach Joe at 215-854-5194 and JoeD@phillynews.com
Advertise Here