10/7/2008

The Federal Reserve negotiated a temporary truce between Wells Fargo and Citigroup in their battle over the acquisition of Wachovia. The move came after Citi filed a lawsuit against Wells Fargo and Wachovia for as much as $60 billion in damages, alleging that their deal breached an exclusivity agreement between Wachovia and Citi. The truce is meant to give both sides time to cool off and work toward a plan for breaking up Wachovia's nonbanking businesses and branch network.

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