Wells Fargo, which had lost the original auction for Wachovia, came back with a surprise bid of $7 a share. Wachovia accepted that superior offer after a series of court hearings.
But the Wachovia deal was more important for Citigroup than many investors realized. Indeed, in parts of Washington and Wall Street, some whispered that the Citigroup-Wachovia tie-up was actually a backdoor bailout for Citigroup, not just Wachovia.
Finally, hell freezes over: Paul Krugman is lauded on the WSJ edit page.