FDIC Head Seeks Resolution to Wachovia Dispute
Citigroup has filed a $60 billion lawsuit against Wachovia over its deal with Wells Fargo. Meanwhile, FDIC chairwoman Sheila Blair says a resolution may come soon in the fight over who will acquire Wachovia. Bair says regulators are working with Citigroup and Wells Fargo to come up with a solution that serves the public interest. The Wall Street Journal is reporting that over the weekend, the FDIC prompted Citigroup and Wells Fargo to negotiate a compromise that would split Wachovia between the two banks. UNC-Charlotte economist Tony Plath says it's still unclear how Charlotte would fare in that situation. "We won't know what's going to be the impact on the Charlotte jobs market. So right now everyone's just blown away by the events of the last week, week and a half and we're all waiting for what happens next," Plath says. Charlotte plays a role in both Citigroup's and Wells Fargo's plans to acquire Wachovia. Citigroup says the city would be the headquarters of its retail banking operations and Wells Fargo says Charlotte would serve as the base for its east coast retail banking. But political and business leaders have said the Wells Fargo deal could be better for Charlotte.