Citigroup Shares Drop

Can't stop following the financial drama in the news tonight.

Shares in Citigroup Inc. fell sharply Friday after the bank's deal to buy Wachovia Corp.'s banking assets for about $2.1 billion was trumped by an offer from Wells Fargo & Co.

Citi shares lost $4.15, or 18.4 percent, to close at $18.35. In the past year the stock has ranged between $12.85 and $48.95. Wachovia shares soared 59 percent on the new deal, which will pay shareholders about $7 per share, or about $14.8 billion.

The bank had agreed to absorb as much as $42 billion in losses from Wachovia's $312 billion loan portfolio. The Federal Deposit Insurance Corp. agreed to cover losses above that level. The Wells Fargo bid does not include any government guarantees.

Citi is balking at the deal, saying it had an exclusivity agreement that precluded Wachovia from talking to other suitors.

People are being very careful with what they are doing with their money right now.