Another Judge

TODAY'S HOOT

New York Judge stops Wachovia sale to Wells Fargo

This is so bizarre, it's normal today. Citigroup Inc. offered to buy troubled Wachovia Bank for $2.1B, with the assistance of Fannie Mae.  I mean the FDIC. Wells Fargo agreed to purchase Wachovia in a $14.8 billion deal that included no taxpayer liability. Citigroup Inc. then accused Wells Fargo of trying to cut off its earlier takeover offer (DUH)  New York State Supreme Court Justice Charles Ramos issued the order blocking the sale of Wachovia Corp. WTF?  In 2003 Wachovia challenged Connecticut's authority to license and supervise Wachovia Mortgage Corporation, a state-chartered mortgage lender. More generally, the case raised the issue of whether states have authority to license and regulate state-chartered nonbank subsidiaries of national banks. Wachovia claimed in its suit that federal law preempts the authority of state officials to regulate their mortgage subsidiary.  “ On April 17, 2007, the United States Supreme Court upheld the decision of the U.S. Court of Appeals for the Sixth Circuit in Watters v. Wachovia Bank, N.A. that a national bank’s operating subsidiary was shielded by federal law from state oversight [Wachovia v Burke] ” Like Sara Palin and John McCain, I'm no lawyer, but if Wachovia is ruled shielded in Burke, how does a New York judge get off stopping the sale of Wachovia [incorporated in North Carolina]?