Citigroup Acquires Most of Wachovia; Not a Failure, FDIC Says

Citigroup Acquires Most of Wachovia; Not a Failure, FDIC Says

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Wachovia Banking assets sold to Citigroup | Piggington’s. –  · Citigroup will buy Wachovia’s banking operations;FDIC says Wachovia didn’t fail NEW YORK (AP) — In the latest byproduct of the widening global financial crisis, Citigroup Inc. will acquire the banking operations of Wachovia Corp. in a deal facilitated by the Federal Deposit Insurance Corp.

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Citi initially agreed in September 2008, two weeks after the collapse of Lehman Brothers, to buy Wachovia for a song in a government-assisted deal. An FDIC-backed acquisition would have amounted.

"Since the close of our bidding process, Wells has apparently re-assessed its position and come forth with this new offer that does not require FDIC assistance. It should be emphasized that both the Citigroup proposal as well as the new Wells proposal would stand behind all creditors including depositors, insured and uninsured.

Citigroup Inc. has bought wachovia bank with the help of the Federal Deposit Insurance Corp., an FDIC news release said. The bank did not fail, the FDIC said. FDIC helps in Citigroup’s purchase of.

"Wachovia did not fail; rather, it is to be acquired by Citigroup Inc. on an open bank basis with assistance from the FDIC," regulators said in a press statement.

Citigroup would grant the FDIC $12 billion in preferred stock and warrants to compensate the FDIC for bearing this risk. Around the same time, Wells Fargo submitted a bid for Wachovia that the FDIC judged would require a greater amount of FDIC assistance. Consequently, the FDIC accepted the Citigroup bid as the prevailing bid.

"Wachovia did not fail; rather, it is to be acquired by Citigroup Inc. on an open bank basis with assistance from the FDIC," the agency said. Under the deal, Citi granted the FDIC $12 billion in preferred stock and warrants to compensate the FDIC for bearing this risk.

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NEW YORK – In the latest byproduct of the widening global financial crisis, Citigroup Inc. will acquire the banking operations of Wachovia Corp. in a deal facilitated by the Federal Deposit.

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Wachovia was a diversified financial services company based in Charlotte, North Carolina.Before its acquisition by Wells Fargo and Company in 2008, Wachovia was the fourth-largest bank holding company in the United States, based on total assets. Wachovia provided a broad range of banking, asset management, wealth management, and corporate and investment banking products and services.

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