♦ The legal battle between Citigroup and Wells Fargo raged over the weekend as both banks sought the upper hand in their bid for Wachovia. A Fed-led settlement which would divide Wachovia's assets may put an end to the dispute. [NYT, WSJ]
♦ Bank of America has agreed to settle government claims related to Countrywide Financial. The total price tag could exceed $8.6 billion. [WSJ]
♦ Dick Fuld will make his first appearance in weeks when he speaks before a House committee today. [NYP]
♦ Eli Lilly has agreed to acquire ImClone Systems for $6.5 billion. [Reuters]

♦ Stocks tumbled this morning in Europe and Asia amid concerns the crisis is spreading to the world economy. [DB, NYT]
♦ BNP Paribas has agreed to buy Fortis's units in Belgium and Luxembourg for $19.8 billion after a government rescue failed. German state and financial institutions also put together a rescue package for Hypo Real Estate Holding. [Bloomberg]
♦ Hank Paulson is expected to tap Neel Kashkari to oversee Treasury's $700 billion program to buy distressed assets from financial institutions. [WSJ]
♦ J. Christopher Flowers is taking a beating: He fund has lost more than $2 billion in recent weeks. [WSJ]
♦ Phil Falcone's bet on Wachovia just before the short-selling rule was enacted may have earned him as much as $2.5 billion on a single trade. [NYP]
♦ Ebay is cutting 10 percent of its workforce. [Reuters]