Citigroup, Wachovia and Wells Fargo have agreed to stop litigation until noon on Wednesday to crank out a solution to their dispute. The parties called the truce in consultation with the Federal Reserve.

Below is the statement issued by the three firms:

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New York – Citi (NYSE: C), Wachovia (NYSE: WB), and Wells Fargo (NYSE WF), in consultation with the Federal Reserve, announce the following agreement.

Citi, Wachovia, and Wells Fargo have agreed to:

1. A standstill of all formal litigation activity effective immediately;
2. Cease any formal discovery activities, and
3. Cooperate in good faith to agree among themselves to secure orders where necessary in all applicable cases in all jurisdictions tolling any schedules for the filing of litigation papers or court appearances or any other formal litigation deadlines, with the goal of preserving the status quo during the litigation standstill period.

This standstill agreement will terminate at noon on Wednesday, October 8, 2008, unless otherwise extended. 

Edited by: Armie Margaret Lee


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