Grewat the deal will go through without costing the taxpayer a large fortune!
Apparently the FDIC did Wachovia a special favor :
http://online.wsj.com/article/SB122325530665506527.html?mod=yahoo_hs&ru=yahoo
(snip)
“The provision was inserted into the rescue legislation last week, at the behest of the FDIC, according to people familiar with the matter. The aim was to reduce the government’s exposure to Wachovia losses under the original Citigroup deal. Lawyers said the clause appears to defang the exclusivity pact between Wachovia and Citigroup.
(snip)
“Citigroup officials were caught off-guard by the provision, with senior officials not being aware of its existence until Friday afternoon—after President George W. Bush had already signed the bill into law. Citigroup executives argued that the provision also could invalidate Wachovia’s subsequent deal with Wells Fargo—an assertion that those banks dismissed.”
IOW, did Wachovia’s (i.e. Robert K. Steel’s) friends in the Treasury do him a special favor?
Is this going to pass muster?