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Judge blocks Wachovia-Wells Fargo merger

NEW YORK, Oct. 5 (UPI) -- Citigroup Inc. says a New York judge has temporarily blocked the planned $15.1 billion sale of U.S. bank Wachovia Corp. to Wells Fargo & Co.

Both Citigroup and Wells Fargo have deals in place to purchase Wachovia, the ailing Charlotte, N.C., retail banking giant. Citigroup had previously announced a $2.2 billion deal to buy Wachovia with the assistance of the Federal Deposit Insurance Corp., CNN reported Sunday.

Citigroup released a statement saying New York State Supreme Court Justice Charles Ramos halted the Wells Fargo deal and demanded lawyers for Citigroup and Wachovia appear before him this week.

An battle may be brewing between Wells Fargo and Citigroup over which will end up obtaining Wachovia. CNN reported the proposed Citigroup-Wachovia purchase agreement contained an exclusivity agreement requiring Wachovia not seek another bidder or provide information or enter talks that might facilitate a rival bid.

Citing unnamed sources, The New York Times reported Citigroup is seeking $60 billion in damages from Wells Fargo for interfering with the initial transaction.

The newspaper said the judge's order could be the opening round in a protracted legal battle between Citigroup and Wells Fargo.

Iraqi dies in U.S. helicopter collision

BAGHDAD, Oct. 5 (UPI) -- An Iraqi soldier died Saturday evening when two U.S. Blackhawk helicopters collided while landing in Baghdad.

Lt. Patrick Evans, a spokesman for the U.S. military, said the crash did not appear to be the result of insurgent fire, CNN reported.

The UH-60 Blackhawks were landing at Combat Outpost Ford in northern Baghdad.

Two U.S. and two Iraqi soldiers were hurt, Evans said.

Another U.S. helicopter crashed late Saturday during a gunfight between Iraqi forces and insurgents in a Shiite stronghold in eastern Baghdad, Interior Ministry officials said. The area had been sealed off whiel the fighting continued, and the number of casualties was unknown.

FBI gets 'flexible' guidelines

WASHINGTON, Oct. 5 (UPI) -- The U.S. Justice Department has released new guidelines that allow the FBI to use intrusive investigation techniques in national security cases.

Agents would be able to use go undercover, carry out physical surveillance and find informants without any proof that targets are involved in terrorism, The Washington Post reported.

Attorney General Michael Mukasey said Friday that agents need a broader mandate to prevent terrorist attacks by investigating threats before they turn into action. The guidelines fulfill a mandate of the panel that investigated the Sept. 11, 2001, terrorist attacks by allowing the FBI to be "a more flexible and adept collector of intelligence."

The guidelines take effect Dec. 1.

"Since, under these guidelines, a generalized 'threat' is enough to begin an investigation, the FBI will be given carte blanche to begin surveillance without factual evidence," said Caroline Fredrickson, director of the ACLU's Washington legislative office. "These guidelines will lead to political witch hunts and more unwarranted investigations of political enemies and peace groups."

16 killed in India ethnic violence

ASSAM, India, Oct. 5 (UPI) -- Indian authorities say they have imposed a curfew on the remote state of Assam after ethnic clashes there left 16 people dead during a two-day period.

The fighting was between ethnic Bodo residents and illegal Bangladeshi immigrants in Assam's Udalguri district. Two of the 16 fatalities were the result of police fire, the Press Trust of India reported.

Local police officials were disciplined for failing to control the situation. Eight burned bodies were found in Bodo villages, which PTI said were attacked by illegal migrants wielding bows and arrows.

Two of the bodies were found Saturday in the Rowta district as arson and looting sprees were going on in the neighboring Darrang district. Curfews have been imposed in those two districts as well as in Udalguri, PTI said.

Critics: U.S. gov't delays on Gitmo suits

WASHINGTON, Oct. 5 (UPI) -- Legal moves by U.S. attorneys concerning Guantanamo detainees indicate it's unlikely the camp will ever be closed by the Bush administration, critics say.

Despite a U.S. Supreme Court ruling granting rights to the terrorism suspects held at the Cuban military prison and statements by Bush administration officials that they'd like to close Guantanamo, the U.S. Justice Department is continuing to file numerous and time-consuming legal challenges against attempts to provide legal help for the detainees, The New York Times reported Sunday.

As detainees' attorneys have pressed ahead with habeas corpus lawsuits in accordance with the June high court ruling, U.S. attorneys are continuing to argue over such issues as whether court sessions will be secret and if detainees can attend, the newspaper said.

"The legal issues that are being raised by the administration are going to take longer than the remaining time of the administration" to resolve, Vijay Padmanabhan of Cardozo Law School, told the Times. "It is part of a broader strategy, which is not to make difficult decisions about Guantanamo and leave it to the next president."

U.S. officials, however, say the cases are moving along quickly considering they are unprecedented.