Citigroup to buy Wachovia banking operations

[Twist Capper]

biz.yahoo.com/ap/080929/wachovia_citigroup.html
AP

Monday September 29, 8:35 am ET
Citigroup will buy Wachovia's banking operations; FDIC says Wachovia didn't fail


NEW YORK (AP) -- Citigroup Inc. will acquire the banking operations of Wachovia Corp., one of the nation's largest banks, in a deal facilitated by the Federal Deposit Insurance Corp.
Citigroup will absorb up to $42 billion of losses in the deal, with the FDIC covering any remaining losses, the government agency said Monday. Citigroup also will grant the FDIC $12 billion in preferred stock and warrants.


The FDIC asserted that Wachovia didn't fail, and that all depositors are protected and there will be no cost to the Deposit Insurance Fund.

[Twist Capper]

WAMU and Wachovia both gone.........................

[bignaterich]

It's interesting to me that Citigroup is purported to be buying Wachovia. According to the article on CBS Marketwatch, this deal will make Citi the largest bank in the United States.

tinyurl.com/3vaojz

"It begins with Citi, and ends with Citi..."

Nate

[skibuff]

bignaterich my thoughts are the same! what if citi was the guiltiest party so they have to sell off 500 billion in assets and then buy up other banks to cover it all up!

[skibuff]

ohh all so what if the gov money is the portion that has been worked out to cover the dtc and sec for failures on they'er part! just a thought! imho!