Citi Buys Wachovia’s Banking Business
On Monday, Citigroup agreed to purchase the banking operations of Wachovia for $2.1 billion. Citigroup will now have more than 4300 US branches and $600 billion in deposits - putting it with the two other large banking giants Bank of America and JPMorgan Chase (who took over Washington Mutual recently). In the deal, Citigroup will be assuming $53 billion worth of debt and absorb up to $42 billion of losses from Wachovia’s $312 billion loan portfolio with the FDIC covering any remaining losses.
Citigroup to buy Wachovia banking operations [Associated Press]