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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   
Posted 04:58 PM, 10/06/2008
cusoraider
(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!!!!!!!!!!
Posted 04:59 PM, 10/06/2008
Breath EZ
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.
2 comments
About Joseph N. DiStefano
Joseph N. DiStefano writes this blog to feed his PhillyDeals column, which is printed in the business pages of The Philadelphia Inquirer every Sunday, Tuesday, Wednesday, Thursday and Friday. Joe has worked at the Inquirer, mostly, since 1988. He has also written for Bloomberg and Gannett, authored the book Comcasted, majored in economics at Penn, and fathered six children. Reach Joe at 215-854-5194 and JoeD@phillynews.com

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