Wachovia Purchase Temporarily Blocked

Well, what do you know. There's been a temporary injunction filed on behalf of Citigroup (who is in bed with Washington) to block Wells Fargo's purchase of Wachovia -- and once again the American taxpayer is the only one who stands to lose anything as a result. From the AP:

Wachovia spokeswoman Christy Phillips-Brown said in a statement the company believes its agreement with Wells Fargo is "proper, valid and ... in the best interest of shareholders, employees and the American taxpayers."

She said Citigroup is free to make a better offer to Wachovia under that agreement.

The FDIC said Friday that it "stands behind its previously announced agreement with Citigroup." It also said it would review all proposals and work with regulators of all three institutions to resolve the tug-of-war.

Citigroup says it has an exclusivity agreement that bars Wachovia from talking with other potential buyers. Its shares fell sharply after the surprise announcement of the Wells Fargo-Wachovia agreement.

As I pointed out yesterday, Americans just can't be allowed to believe that they make it without the help of the federal government.