Network News

X My Profile
View More Activity
2.7%  Q1 GDP    4.57%  avg. 30-year mortgage     9.5%  Unemployment

Wachovia Litigation at Self-Imposed Standstill

Three companies that have been at each others legal throats for several days have agreed to what they collectively call "a standstill of all formal litigation activity." The deal was made in consultation with the Federal Reserve, according to a statement on Wachovia's web site.

The standstill lasts until Wednesday and it is presumably to allow the banks to work out a difficult situation: Citigroup was to buy Wachovia's deposits, but then Wells Fargo swooped in to buy all of Wachovia. Then the lawyers got busy. This morning, Citigroup filed a $60 billion lawsuit against Wells Fargo and Wachovia.

Until Wednesday, the lawyers -- at least the ones arguing with each other -- are standing down.

-- Michael S. Rosenwald

By Michael S. Rosenwald  |  October 6, 2008; 4:59 PM ET
Categories:  The Ticker  
Save & Share:  Send E-mail   Facebook   Twitter   Digg   Yahoo Buzz   Del.icio.us   StumbleUpon   Technorati   Google Buzz   Previous: Wild Day on Wall Street
Next: Morning Briefing

Comments

You bet Citigroup will sue. It does not want Wells Fargo, which is not one of the financial oligopolists, to join the club.

Posted by: Hizzoner | October 6, 1908 6:12 PM | Report abuse

It's like Mad Max and by Friday we're all going to be fighting over the last drop of gasoline. Good till the last drop.

--------

Posted by: Anonymous | October 6, 1908 6:43 PM | Report abuse

The comments to this entry are closed.

 
 
RSS Feed
Subscribe to The Post

© 2010 The Washington Post Company