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In the battle for the buyout of Wachovia, regulators think they may have reached a compromise: Citigroup (first to reach a deal) would get branches in the Northeast and mid-Atlantic and Wells Fargo (high-bidder) would get control of banks in the Southeast and California. Wells Fargo would also take Wachovia's asset-management and brokerage.

I would think that the new deal is better for Wachovia shareholders and American taxpayers, but a carved-up Wachovia would leave Charlotte in a worse position, and further diminish how much Charleston sees in banking contributions. The Charlotte Observer agrees.

Get the best analysis of the new compromise at the Wall Street Journal.