Earlier today, Wachovia announced a $23.9 billion quarterly loss, "one of the largest in banking history." We also noticed this Wachovia-related incident on the Gothamist Newsmap: "Another Wachovia Bank Robbery" in Manhattan. more ›

After claiming it should still be allowed to purchase--with the help of the government-- Wachovia for $2 billion, Citigroup is now allowing Wells Fargo buy Wachovia for $15 billion. Wachovia issued a statement saying, "We're pleased Citigroup has abandoned its efforts to interfere with Wachovia's planned merger with Wells Fargo. We look forward to completing our merger with Wells Fargo, which we have always believed is in the best interest of shareholders, employees, creditors and retirees as well as the American taxpayers, and it imposes no risk to the FDIC fund." Of course, Citigroup is still suing for $60 billion in breach of contract damages! more ›

Citigroup may have gotten a NY judge to block Wells Fargo from taking over Wachovia on Saturday, but that was overturned by an appellate court judge yesterday! Apparently a NY judge can't issue an order from outside of NY--and the judge was in Connecticut at the time (it's like a mistake that would happen on Law & Order!). The NY Times' Dealbook tries to explain the lawsuits piling up--Citigroup is suing Well Fargo for interfering with its federally-arranged $2+ billion purchase of Wachovia, while now Wachovia is suing Citigroup claiming that their agreement is not exlusive and its can purse the $15+ billion offer from Wells Fargo. Bloomberg News reports that squabble could mean Wachovia gets split up between Citigroup and Wells. more ›

The NY Times reports that Citigroup says it "persuaded a New York judge to temporarily block Wells Fargo from acquiring Wachovia." Wells Fargo's $15 billion deal was announced on Friday, surprising Citigroup which had worked with the feds to acquired Wachovia for $2.2 billion. Citigroup says their agreement prohibited Wachovia from any other discussions until after October 6 but Wachovia spokesperson said its Wells deal is "proper, valid and is in the best interest of shareholders, employees and the American taxpayers. Under that agreement, Citigroup is always free to make a superior offer to Wachovia." Wells' chairman further emphasized, "The taxpayer doesn't pay a penny." Oh, and the TImes's source said, "Citigroup was seeking $60 billion in damages from Wells Fargo for interfering with the initial transaction." more ›

Forget the federally-backed deal for Citigroup to buy Wachovia, because now Wells Fargo will take over Wachovia for $15.4 billion--and the Wall Street Journal says it won't require any government assistance. Earlier this week, Wachovia agreed to sell its banking operations to Citigroup," and the FDIC would have been responsible for any potential loan losses. Bell Rock Captial CIO Cassandra Toroian told CNBC, "For Citigroup, this is a real loss...this was a deal that was going to save them as much as it was saving Wachovia," while Wachovia was "smart" and is getting a "better deal." more ›

">since late last week. Also, the FDIC says Wachovia didn't fail, "For Wachovia customers, today’s action will ensure seamless continuity of service from their bank and full protection for all of their deposits. There will be no interruption in services and bank customers should expect business as usual.” more ›

A day after Washington Mutual fell, Wachoiva began talks with Citigroup and other possible suitors, including Wells Fargo and Banco Santander of Spain, about a possible merger. The Wall Street Journal reports that "Wachovia officials don't believe they need to rush into a deal, and the bank isn't feeling immediate pressure on its financial condition," but the mortgage crisis has put pressure on many banks. Shares have fallen 78% in the Charlotte, NC-based company over the past year, and the NY Times says Wachovia holds $120 billion of risky option adjustable-rate mortgages, which allow borrowers "the option of skipping part of their payments and adding that debt to the principal of the loan." more ›

Wall Street is poised for a rally as central banks around the world--from the U.S.'s Federal Reserve to the European Central Bank and Bank of Japan (and others)--put more cash into the markets. Per the NY Times:

The Fed said in a statement that it had authorized a $180 billion expansion of its temporary reciprocal currency arrangements, known as swap lines, to allow banks to borrow more dollars in markets at a lower rates... more ›