Rivals Agree to Pause in Wachovia Fight

An FDIC spokesman did not return a phone call on Monday.

Dahiya said "there is more in this deal for Citi than there is for Wells Fargo," given its need for deposits. Citi, in announcing its lawsuit, said it "was always a deal Citi wanted rather than one we needed." Indeed, the bank has been active in getting its side of the story out to the media since the Wells Fargo deal was announced, sending a flurry of press releases in response to each twist and turn in the drama.

"We were and remain very excited about this transaction and how it will benefit the clients and shareholders of Citi and Wachovia, as well as help preserve the stability of the financial system," the bank said in the statement.

Citi reiterated that it had been providing liquidity support to Wachovia since its deal was announced.

A Wachovia spokeswoman said the bank "continues to believe its agreement with Wells Fargo, which involves no government assistance, is proper and valid," according to a statement. "The agreement is in the best interests of shareholders, employees, creditors and retirees as well as the American taxpayers and it imposes no risk to the FDIC fund."

Wells Fargo declined to comment.

Earlier on Monday, the Wall Street Journal reported Fed officials were pushing for Citigroup and Wells Fargo to reach a compromise. The effort could result in carving up Wachovia between its two suitors, the Journal reported, citing people familiar with the situation.