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The US economy was passing through a financial meltdown, caused by the sub-prime mortgage crisis and the consequent credit crunch, beginning in the summer of 2007, which had pan-global repercussions. In such financially turbulent times banks were struggling with an abrupt crunch in liquidity and loss of goodwill. While financial giants like Bears Stearns, Lehman Brothers and Merrill Lynch suffered to the point of losing their identity, Wells Fargo, another financial institution, remained strong by and large and had taken the risk of acquiring Wachovia, a victim of the financial meltdown, in a $15 billion deal by substantially outbidding Citigroup's offer of USD2.2 billion, and also declining any government assistance. This deal poised to be completed by the end of the fourth quarter of 2008 would create the fourth largest banking entity in the US with over 6,000 banking branches nationwide. With the challenges of balancing solvency, liquidity, asset quality and growth, it remains to be seen whether this acquisition was a prudent call or a hasty decision.