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Text size [+][-]  Friday March 19 2010GLOBAL EDITION

Considered view
06 Oct 2008 21:01

PR Plutonium

Context News

Citigroup, Wachovia and Wells Fargo agreed a litigation standstill until Wednesday at noon. The agreement came after Citigroup sued Wells and Wachovia for $60bn in damages on Monday. Last week, Wells agreed to acquire Wachovia for $15bn, spoiling Citi’s own takeover of the North Carolina lender for about $2.2bn, and the assumption of some risk by the Federal Deposit Insurance Corp.

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It’s hard to see how Citi can come out looking good from the Wachovia battle. Wells Fargo is offering more money to shareholders and less taxpayer risk. Forget the legal arguments, Citi should accept a face-saving gesture, call itself collateral damage and move on.

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