Credit-Default Suit Against Wachovia Survives — Barely

It's still too soon to tell whether there will be a tsunami of litigation over credit-default swap agreements gone bad. But it's probably a safe bet that litigation initiated by a hedge fund against Citigroup and Wachovia won't roil the waters much. On Monday, a New York federal judge dismissed seven of eight causes of actions brought by the VCG Special Opportunities Master Fund against Wachovia. The judge let pass VCG's claim for "breach of the implied covenant of good faith and fair dealing."