The carcass that got away

Citigroup’s plans to feed on Wachovia’s carcass have been rudely interrupted by Wells Fargo’s surprise $15.1bn bid. Citi chief Vikram Pandit and his colleagues are miffed. But if the bank loses out it could be well placed for future deals. Citi’s initial deal for Wachovia certainly looked advantageous. Citi needs to expand its deposit base. The cost was only 6% of deposits. And it had cushioned the worst of the downside risk via the Federal Deposit Insurance Corporation’s agreement to take losse...