For more on the financial crisis, check outGlobeSt.com's Webinar, "Wall Street In a Freefall—TheWinners and Losers."

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CHARLOTTE, NC-Legal battles between locally based Wachovia Corp.and two other major banks have been halted briefly while theFederal Reserve attempts to mediate a compromise over which suitorwill assume ownership, possibly dividing its deposits. Resolutionof the matter was expected to be reached by noon Wednesday and isnow being extended to Friday morning, according to variousreports.

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Litigation in the matter has stretched from New York to NorthCarolina since last weekend as New York City-based Citigroup Inc.attempts toblock San Francisco-based Wells Fargo & Co. fromadvancing its offer to buy Wachovia. Wachovia accepted Wells'$15-billionstock-swap offer Oct. 2, four days after Citi had madea lesseroffer that included a bailout provision by the FDICcovering billions of dollars in bad mortgages issued byWachovia.

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A compromise was reportedly reached Tuesday in which Wells wouldget at least 75% of Wachovia's deposits while Citi would get theremaining balance. Wells would inherit Wachovia's branches in theSoutheast and on the West Coast, while Citi would get those in theNortheast.

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Meanwhile, Charlotte Mayor Pat McCrory has sent a letter tofederal regulators asking that they consider the local and nationalimpact of their resolution of the Wachovia sale. "I ask that theprimary focus be on maintaining jobs and recognizing Charlotte'sstrengths of a highly skilled work force, low business costs,comprehensive infrastructure and a vibrant quality of life,"McCrory stated.

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