BTW, how are you short C with the ban in place? IMO, without the ban, CITI would be in BIG trouble. If I had a short position I'd keep it. Hedge it with options if you must.
When I heard about the Citi - Wachovia merger, it seemed like an awful idea since both have real problems with derivative portfolios. Wells Fargo MAY be able to maintain capital ratio with Wachovia, but CITI couldn't. Either way, CITI will be lower in 3 months. With Wachovia, it may be taken out by FDIC.