NEW YORK–After four days of wrangling with Wells Fargo & Co. over Wachovia Corp., Citigroup Inc. said late Thursday it broke off compromise talks with Wells.After the markets closed, Citi said it could not reach an agreement with Wells because of the "dramatic differences in the parties' transaction structures, and their views of the risks involved made it impossible to reach a mutually acceptable agreement," according to American Banker, an affiliate of Credit Union Journal.A person briefed on the negotiations said Thursday that trying to fully assess the quality of Wachovia's assets remains a concern for both bidders, and that reaching an agreement on how to divide Wachovia's bank branches held up talks.A person close to Citi said it still wants any deal to involve a risk-cap agreement similar to the one initially agreed to with the Federal Deposit Insurance Corp. last week.Wells would not discuss the matter.Citi announced a plan Sept. 29 to buy Wachovia's banking operation for $2.16 billion and the assumption of $53 billion of debt. The New York company agreed to pay the FDIC $12 billion to shoulder Wachovia loan losses above $42 billion. Four days later, Wells announced that Wachovia had accepted a $15.1 billion all-stock offer for all its operations — an offer that Wells said did not involve FDIC aid.Citi also said it decided not to try to block a Wells-Wachovia merger.

WASHINGTON–CUNA and NAFCU rushed to file comment on a Fair Accounting Standards Board proposal on fair value accounting within the six-day comment period."To summarize, a fair value assessment reflects the price at which an orderly transaction would occur between market participants on the measure date," CUNA wrote in its comment letter. "However, the application of this key principle raises serious concerns and provides opportunities for the distortion of an asset's value, particularly when the asset is held to maturity."Though CUNA praised FASB for suggesting it would be appropriate in some cases to "determine that observable market data...require significant adjustment based on unobservable data…. " the trade association expressed concern the proposal doesn't go far enough in addressing key issues regarding the application of fair value "for performing assets where there is an ability and intent to hold until recovery or maturity. For example, it does not address the concern that many have raised that an asset that can be held to maturity should not be marked to current market prices."For its part, NAFCU said it generally supports the proposal, but said that any flexibility in the determination of fair value must also be "balanced with transparency. Thus, we urge that management’s assumptions about future cash flows and appropriately adjusted discount rates, as well as statements of management intent and ability to hold securities, both in active and inactive markets, are adequately disclosed."NAFCU also said FASB should address held-to-maturity securities, allowing "current severe liquidity risk premiums to be adjusted in the determination of fair value to levels observed during periods of normal market activity."

WASHINGTON–The Treasury Department yesterday signaled its intent to purchase ownership stakes in banks.Such direct investment in banks would previously have been unthinkable, but the scope of the financial crisis is pushing regulators to move into areas they otherwise would have avoided. Details of how this will work are expected to be released soon.With precious few implementation details on offer, speculation about what other tools regulators might use to stanch the financial bloodletting abounds.Among some of the ideas being bandied about include government easing restrictions on companies that can own banks, issuing government guarantees for interbank loans ordering emergency audits of large institutions and improving loan modification efforts.

Federally insured credit unions will not be charged a premium to increase the coverage of the National Credit Union Share Insurance Fund to $250,000 per account.

After getting an earful from regulators, two Texas credit unions have agreed to pull advertisements that suggested their deposits would be safer with the credit unions than with banks.

TEMPE, Ariz. – Authorities were hunting yesterday for a man who held up an armored car guard outside Arizona Central CU on Tuesday afternoon.

FITCHBURG, Mass. – One lucky member of IC FCU will win a five-day trip to Disney World for a family of four next week, as part of the $350 million credit union’s 80th birthday party.

TULLAHOMA, Tenn. – Ascend FCU said it has deployed Zix Corp.’s new data loss prevention system email encryption for protecting member data and safeguarding intellectual property.

LAKEWOOD, Colo. – Jeffco CU said yesterday it has signed with Positive Networks to install the company’s phone-based authentication technology, PhoneFactor, to protect its members from the growing threat of phishing scams.

NASHUA, N.H. -- Gas prices were lowered to $1.99 per gallon at the Gulf Station on downtown’s Broad Street yesterday, courtesy of Digital FCU.

HONOLULU – University of Hawaii FCU said it has partnered with a consumer science professor at the University and a local elementary school on a new youth savings account that will start with a $25 donation.

MILWAUKEE – Guardian CU announced yesterday it has agreed to combine with Prime Financial CU to create a $500 million credit union, the state’s tenth largest.

WASHINGTON – The Treasury Department is hastily designing a plan for its bailout of the mortgage industry and accepted bids yesterday to manage the $700 billion of assets it will buy from banks and credit unions.

WHITTIER, Calif. – A man arrested and charged with last month’s robbery at Southwestern FCU is believed to be the so-called Beret bandit, responsible for as many as eight area hold-ups.

MOUNTAIN HOME, Idaho – The former manager of the loan collections department at Pioneer FCU was sentenced yesterday to 46 months in prison after pleading guilty to embezzling more than $420,000 from the $210 million credit union.

WASHINGTON – The Federal Home Loan Bank of Chicago, which has been promoting its secondary mortgage market program as an alternative to Fannie Mae and Freddie Mac, announced yesterday it has agreed to sell loans under its Mortgage Partnership Finance program to Fannie Mae.

BIRMINGHAM, Ala. – Corporate America CU announced yesterday it has signed a deal with FIMAC Solutions LLC to sell the company’s Risk Analytics ALM Model, Balance Sheet Manager, and A/L Reporter to its member credit unions.

MIRAMAR, Fla. – Tropical Financial CU yesterday announced a special rate for businesses and commercial real estate borrowers who want to refinance their loans.

EUGENE, Ore. – SELCO Community CU said it has opened a second Lending Outlet, a subsidiary operation that offers consumer loans and other services aimed at low-income people.

SAN DIEGO – State regulators said yesterday they have approved the merger of Financial 21 Community CU, a $133 million credit union that was wounded by an ill-fated foray into subprime auto loans, into California Coast CU, the San Diego giant’s second large merger in the last few months.