Stock Update: Wachovia, Wells Fargo and Citigroup

Wells Fargo and Citigroup were told to hold all legal proceedings over the buy-out of Wachovia until noon on Wednesday. This held the cautious investors back on Tuesday whilst they continue to wait for a compromise between the two banks over the fight for Wachovia.

Taking a look at the shares at mid-morning, Citigroup fell 45 cents or 2.6 percent down to $16.96, whilst Wells Fargo dropped 20 cents to $33.44 and after a changeable early trade Wachovia gained 7 cents to $5.85.

According to media reports the talks could lead to the New York based Wachovia between Wells Fargo and Citigroup as the federal government step in to intervene to avoid a long drawn out court battle, although both banks have stressed the urgency to the Federal government as to make a decision and fast as they feel any more strain on the troubled bank could weaken the health of Wachovia even further.

Read the full article: forbes