Teen Forums - Teen Chat, Teen Help, Teen Advice & Support

As we mentioned last week, Citigroup was said to be buying Wachovia with the help of the U.S. government.

Citigroup had agreed to buy Wachovia's assets for $2.1 billion in a deal which was brokered by the Federal Deposit Insurance Corp. But, then on Friday, Wells Fargo upped the offer by saying they'd buy Wachovia for $15.1 billion and the deal would not require any government support.

This lead Citigroup and Wells Fargo into both state and federal court this weekend in a battle over Wachovia.

Citigroup sued Wachovia, Wells Fargo, and the directors of both companies for interfering with their planned takeover of Wachovia. They're seeking more than $60 billion in damages.

The complaint says it's seeking more than $20 billion in compensatory damages and more than $40 billion in punitive damages from Wells Fargo for tortious interference.

Well now new reports are stating that Citigroup, Wachovia, and Wells Fargo have all agreed to a standstill of all formal litigation while a decision is trying to be reached regarding the fate of Wachovia.

The standstill agreement will end at noon this Wednesday, unless it gets extended.

Citigroup spokesman Michael Hanrettasaid in a statement, "We are pleased to participate with the Federal Reserve Board in a fair-minded, good faith process to achieve a prompt and successful outcome."

Frederick Cannon, an analyst at Keefe, Bruyette & Woods, said, "If this goes into a protracted legal battle, everybody loses. Wachovia is big enough that it would be a negative for the financial system. Given that situation, we will see a resolution pretty quickly."



- perez hilton.

aah its too confusing for me.

♥. Just another day like any other,
Nothing in the sky said run for cover,
There was no parade,
No lights flashing,
No songs to sing along the way. ♥