Behind every blockbuster deal, there's a story. Sometimes it takes years for it to come to light--if ever. A new book takes an insider look at how Citigroup (NYSE: C) and Wells Fargo (NYSE: WFC) fought for Wachovia.

The battle featured Sheila Bair of the FDIC in an unlikely role as referee, dealmaker and powerbroker. Ben Bernanke also figures in the story.

An auction definitely played out behind the scenes, and Citigroup emerged as the initial winner. By then, Bair had grown exasperated with Wells Fargo, for its stalling when it came to submitting a bid. But in the end, Wells Fargo prevailed in a deal that was said to not include much in the way of government assistance and guarantees.

The deal was seen as a huge triumph for Wells Fargo CEO Dick Kovacevich, who had previously told regulators he would only do a deal with government assistance, and a bitter defeat for Citigroup CEO Vikram Pandit.

The excerpt doesn't include the perhaps more exciting story of Wells Fargo wrestling the deal away from Citigroup and Vikram Pandit. But it is interesting to see how it all went down and how the early dealing was driven by the government.

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