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
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Posted by: Hizzoner | October 6, 2008 6:12 PM
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