Wachovia: A Split May Boost the Banking Industry
For Washington policymakers, the prospect of a grinding, slow-motion legal fight between Citigroup (C) and Wells Fargo (WFC) for the spoils of troubled Wachovia (WB) is clearly unnerving. In a period when the markets seem to come more unhinged with each passing day, regulators fear that a protracted battle in the courts could cause an acceleration in public bank runs. That explains the news reports on Oct. 6 that officials from the Federal Reserve were brokering a compromise that would end with Citigroup and Wells Fargo carving up Wachovia's assets.
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