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Wells Fargo to pay Citigroup $100M to settle Wachovia lawsuit

NEW YORK — Wells Fargo has agreed to pay $100 million to Citigroup to settle all claims in a dispute related to its 2008 acquisition of Wachovia Corp.

Wachovia nearly collapsed in October 2008, at the height of the financial crisis, under the weight of losses from real estate loans that went bad.

The Charlotte, N.C.-based bank initially agreed to be bought by Citigroup Inc. with help from the U.S. government. However, Wells Fargo & Co. came in with a higher offer days later and managed to grab Wachovia away from Citi. Citigroup sued in a New York court soon thereafter.