[JURIST] The US Federal Reserve Board [official website] Sunday approved [press release] a controversial merger between Wachovia bank and Wells Fargo that had prompted a legal challenge from jilted corporate suitor Citigroup [corporate websites]. Encouraged by the Federal Deposit Insurance Corporation (FDIC) [official website], Citigroup agreed earlier this month to buy out Wachovia for $2.1 billion [press release] but was effectively trumped by a Wells Fargo offer of $11.7 billion. Citigroup subsequently filed a legal challenge to the merger which was only dropped [JURIST report] on Thursday, although a complementary damages suit against both corporations for tortious interference in contract remains on foot. The Federal Trade Commission approved the merger on an expedited basis Friday. The Washington Post has more.

Wachovia is one of several major financial institutions that have failed or sought mergers [JURIST report] amid turmoil in the subprime investment market [academic backgrounder]. Earlier this month, President Bush signed into law [JURIST report] a $700 billion bill intended to stabilize financial markets. The Emergency Economic Stabilization Act of 2008 [PDF text] authorizes the US Treasury to purchase troubled assets from financial institutions and to provide insurance and guarantees for any troubled asset originating before March 14, 2008.

[JURIST] A Kiev court Saturday blocked a decree by Ukrainian President Victor Yushchenko [official website] dissolving parliament and directing parliamentary elections in the wake of the collapse of the governing coalition. The Kiev District Court made the ruling against the elections in response to a lawsuit brought by Prime Minister Yulia Tymoshenko [personal website] against Yushchenko and Ukraine's Central Election Commission (CEC) [official website] claiming that the election was called earlier than indicated by law. Media sources Sunday quoted Kiev Prosecutor Yevheniy Blazhyvsky as saying that the lower court judge who first ordered a block on Friday would be charged with knowingly commiting an unlawful act. RIA Novosti has more.

Ukraine's leadership is seriously divided in the wake of the 2004 Orange Revolution [backgrounder] that brought Yushchenko to power as president. The ambitious and highly populist Tymoshenko was originally a Yushchenko ally, but more recently has become disaffected, leading to the collapse of the government [press release] over disagreements on a variety of domestic and international issues.