On October 2, Bob Steel, the CEO of Wachovia, received a frantic phone call from Sheila Bair, the chairwoman of the F.D.I.C., just as his plane was about to takeoff. Well Fargo, she said, was about to make a bid for Wachovia, topping an earlier agreed deal with Citigroup. When Steel landed, Wells Fargo’s CEO, Richard M. “Dick” Kovacevich, sent him an email on his Blackberry with this letter attached. Four hours later, Wachovia agreed to the new deal, as reported in Too Big to Fail: How Wall Street and Washington Fought to Save the Financial System — and Themselves.

The deal between Wells Fargo and Wachovia sent Citigroup’s Vikram Pandit into a panic and began a series of anxious phone calls in the middle of the night. Some observers suggest that while the deal saved Wachovia — and gave its shareholders a higher price — it may have ultimately led to investors’ loss of confidence in Citigroup. Bair, who orchestrated the original deal between Citigroup and Wachovia, appeared to switch allegiances, in part, because Wells Fargo’s bid required no additional support from the FDIC. However, Citigroup, the loser in the takeover talks, has now become one of the largest recipients of taxpayer aid.

Too Big Too Fail: Wells Fargo Offer for Wachovia