Monday, October 06, 2008

Citigroup sues Wachovia, Wells Fargo, for $60 bn

US financial giant Citigroup has sued Well Fargo and its takeover target Wachovia for $60bn (£34bn). Citigroup said their agreement violated its earlier deal to buy Wachovia's banking operations. If the deal goes through, the merged bank would have the biggest network of branches in the US. Reports suggest, however, that the US Federal Reserve is pushing for a compromise deal, whereby both suitors divide Wachovia's network of 3,346 branches. would take over those in the north-east and mid-Atlantic regions, with Wells Fargo taking those in the south-east and California. Wells Fargo would also take over Wachovia's asset management and brokerage businesses.

IMO: Congress shows a sorry willingness to use a national emergency to score political points over this suit, and over the bailout package and its need. What about the borrowers and depositors, but best vote Democrat anyway as McCain caused the problem in the first place and will only make things worse if elected

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