Citi Thrusts ... But is Parried...in Wachovia Bid<< Chasing Wachovia--The Plot Thickens | Main | Citi/ Wells Extend Wachovia Talks, but Debt Clock Overwhelmed >> Ed Kountz | October 06, 2008, 07:44 AM Citigroup won a weekend injunction designed to keep its bid for troubled Wachovia in the forefront, but found itself facing a setback a day later when the Appellate Division of the State Supreme Court threw out Saturday's order, issued by Justice Charles Ramos. Ramos' injunction would have upheld the Citi/ Wachovia exclusivity agreement from Sept 29, and was spurred by Wachovia's post-Citi-agreement decision to follow thru on what it perceived as a better offer from Wells, on October 3rd. Citi has indicated the firms will appear before the NY Supreme Court October 10th. One element worth noting in this back-and-forth is the potential impact to the cards landscape. Citi, a long-time MasterCard issuer, would find itself with an issuer focusing on Visa-branded debit cards in Wachovia...a big boost to MasterCard (and Citi) at a time when consolidation could leave some MasterCard issuers (WaMu) in the arms of Visa issuing institutions. Yet Wells' portfolio is different...using both brands, but with an emphasis on Visa cards. As a result, the impact of these maneuvers will have an impact beyond just the brand on cnosumers' ATMs. As of this writing, bank troubles appear headed overseas, with BNP Paribas snapping up Fortis and several nations moving to shore up their banking sectors. |
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