Skip to main content

Citigroup

(SYMBOL)

is in discussions to acquire a U.S. bank after walking away from a deal last month to buy

Wachovia

(WB) - Get Weibo Corporation Report

, the

Wall Street Journal

reports.

The target's name couldn't be determined, but it is a regional bank that overlaps geographically with Citigroup's retail-banking unit, which has its highest concentration of branches in the Northeast, California and Texas, according to the newspaper. A deal could be reached later this month, people familiar with the situation said.

Scroll to Continue

TheStreet Recommends

Citigroup lost a battle last month with

Wells Fargo

(WFC) - Get Wells Fargo & Company Report

to acquire Wachovia. Wells' deal to buy Wachovia for $15 billion is expected to be completed soon.

The fallout from that deal has added to tensions between Citigroup executives and directors, the

Journal

reports. Some insiders say an acquisition would pump up morale at Citigroup and ease the embarrassment of the Wachovia mess.

Image placeholder title

This article was written by a staff member of TheStreet.com.