This past week has been chaotic for the markets, for investors and for Citigroup (C: 17.66, -0.69 (-3.76%)). Announced on Monday, Wachovia’s operations excluding Wachovia Securities and Evergreen Asset Management were sold to Citigroup. The deal was brokered by the FDIC over the weekend of September 28th and 29th to prevent any further shockwaves in the financial markets and the economy. The deal was at a fire sale price of $1/share for Wachovia’s assets, including the toxic waste that has corroded a significant portion of its market value. Wachovia (WB: 5.94, -0.27 (-4.35%)) shareholder’s woke up on Friday morning to a sweeter offer, Wells Fargo (WFC: 33.68, -0.88 (-2.55%)) came out with a $14.8 billion offer for the Charlotte bank. Citigroup on the other hand was left waiting at the altar like a groom waiting for his bride who got cold feet and fled from the chapel.

Friday’s news from Wells Fargo sent Wachovia’s shares shooting up over 58% as shareholders saw a $1.00 a share bid become minuscule compared to Wells Fargo’s $7.00 a share offer. The new offer from the West Coast banking giant leaves Wachovia intact, taking Securities as well as the commercial and investment bank with it. Wells Fargo management apparently has been savoring a Wachovia acquisition for years, now at a time of distress, the patience seems to have paid off. Wells Fargo’s management was very smart in taking time to calculate the price of the Southern banking giant in its entirety. This preservation of the business will help Wells Fargo diversify its revenues as well as gain an immense foothold in the east coast banking environment. Wachovia’s culture milked value from the cross selling abilities of its wide range of offerings backed by employees that rank #1 on the customer satisfaction index. Wells Fargo is getting Wachovia at a great discount, but not ripping off the shareholders completely with their $15.1 billion offer. So during all of this action on Friday, what was the groom up to?

What about Citi?

Early Sunday morning, a court order froze the Wells Fargo and Wachovia order stating that according to the deal brokered with Citi, Wachovia could not negotiate with any other parties. Score one for Citi. The tides soon turned in favor of Wells Fargo when a higher court overturned the ruling and the government came back to help find a compromise to the situation.