Fed rushes to approve Wachovia purchase

WASHINGTON, Oct. 13 (UPI) -- The U.S. Federal Reserve Board said Monday it had approved the $12.2 billion purchase of Wachovia Corp. by Wells Fargo & Co.

The rushed approval follows Wachovia's application submitted to the New York Stock Exchange to bypass shareholder approval for the sale.

Wachovia's Audit Committee recommended skipping a shareholder vote because "the delay necessary in securing shareholder approval for the consummation of the stock issuance would seriously jeopardize the financial viability of Wachovia," the bank said.

Similarly, Wells Fargo said Friday it had submitted its application to the Federal Reserve Board and was looking for "expedited approval of the merger."

The Wells Fargo purchase trumped an earlier agreement with Citigroup, which filed a lawsuit claiming $60 billion in damages. After Wells Fargo emerged as the victor in out-of-court negotiations for the firm, Citigroup said it would continue to pursue the lawsuit.