Looks like the federal reserve is having to step in to see who gets Wachovia Wells Fargo or Citigroup. The sagga continues.
NEW YORK - Wachovia, Citigroup and Wells Fargo, in consultation with the Federal Reserve, have agreed to a standstill of all formal litigation activity.
The agreement is scheduled to end at noon Wednesday.
Federal Reserve officials Monday were negotiating with Wells Fargo and Citigroup in the hope of getting the parties to come to some sort of agreement.
Early last week, Citigroup agreed to buy Wachovia's banking assets for $2.1 billion in a deal brokered by the FDIC. On Friday, Wells Fargo said it agreed to buy the bank for $15.1 billion without any government support.
Citigroup Inc. said Monday it filed a complaint in New York Supreme Court against Wachovia, Wells Fargo and the directors of both companies seeking more than $60 billion in damages for interfering with the bank's planned takeover of Wachovia's banking operations.
The complaint, brought Saturday and filed Monday, seeks more than $20 billion in compensatory damages and more than $40 billion in punitive damages from San Francisco-based Wells Fargo & Co.
Guess we are going to have to wait till Weds to see what happens. Keep and eye out and I will keep you updated!
We should let the market take care of itself. Let the high bidder have it.
Richard I don't think it has much to do with that. Its the fact that they had an agreement with citigroup when Wells tried to steal it from under them. CONTRACTS!!!
Finally the Fed doing something constructive that does not cost us money. I hope they work this all out so that we can all become stronger and move on