CHARLOTTE -- Some people in Charlotte may be breathing a sigh of relief on Friday, after Citigroup decided to step away from negotiations to buy Wachovia.

After nearly a week of talks with Wells Fargo, executives with the bank said they couldn’t reach an agreement. It had originally appeared last Monday that Citigroup would buy portions of Wachovia for $2 billion. A few days later, Wells Fargo stepped in and offered over $15 billion for the whole company.

Since then the two banks have been fighting over their cut of Wachovia. Local economists say the Wells Fargo deal is a much better one for the bank and city as that merger would save jobs in Charlotte and create the country’s fourth-largest bank.

There are still several hurdles to overcome before the deal is sealed.

First, Citigroup says they are planning to sue Wachovia and Wells Fargo for breach of contract. Citigroup says they had an exclusivity deal with Wachovia and are going to seek $60 billion in damages. That case will proceed in New York Supreme Court.

Meanwhile, the federal government has to approve Well Fargo’s application to merge with Wachovia. They’re planning to immediately look at the merger.

Once that’s done, shareholders will vote. Officials say it’s likely that will happen before the end of the year.