Fed says it has yet to review Wells Fargo bid for Wachovia

The Federal Reserve issued a cautious statement on Friday about the new bid for Wachovia from Wells Fargo. The central bank said that is has yet to review the Wells Fargo proposal "and the issues that it raises." In contrast, the Fed said that the competing Citigroup proposal to acquire Wachovia has "undergone extensive review" by regulators.

VERY interesting -- do the Feds not like a non-fortress bank sucking up another bank amidst the turmoil? At any rate, I still don't see how anyone can gain confidence in Wells out of this move; they didn't have the cash for the transaction, and they'll take on the full brunt of Wachovia's $300B or so of risky loan liability.

Also see Is Citigroup gonna fight Wells Fargo for Wachovia?.