Wachovia's future hazy as truce holds
The truce was scheduled to end Wednesday at noon before the extension was put in place.
CHARLOTTE -- A litigation truce between Wachovia, Wells Fargo and Citibank is still holding strong on Thursday.
Officials announced on Wednesday that negotiations would be extended until Friday at 8 a.m. after the noon ceasefire deadline came and went. Now, after days of debate, it appears that talks between the three and the federal government may be shifting gears.
Representatives of the three banks have been meeting in private since Sunday, with the possibility of splitting Wachovia up reportedly being at the center of discussion. And until recently, it seemed as if both Citigroup and Wells Fargo were ready to battle for the bulk of the company.
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But after taking a closer look at Wachovia’s books, the two suitors could be growing weary.
According to The Wall Street Journal, both Wells Fargo and Citigroup are concerned about Wachovia’s concentration of low-quality assets. The paper published an article early Thursday morning saying “that buying even part of Wachovia could saddle [Citigroup and Wells Fargo] with steeper losses than previously expected.”
It went on to say that the two potential buyers are arguing over who gets Wachovia’s computer system. The paper’s sources did say though that they remain hopeful that a deal can be reached.
Stay tuned to News 14 Carolina for more updates on the Wachovia situation as they become available.