Citigroup will acquire the banking operations of Wachovia according to a press release from the FDIC this morning. Citi will acquire "the bulk of Wachovia's assets and liabilities." Under the agreement, Citigroup will absorb up to $42 billion of losses on a $312 billion pool of loans, while the FDIC will take losses beyond that.
Citi will pay $1 per share for the bank.
According to a Wachovia press release, "Wachovia Corporation will remain a public company with two main operating subsidiaries: Wachovia Securities, the nation's third largest brokerage firm, and Evergreen Asset Management, a leading provider of asset management services." So they will be like Fidelity or Vanguard.
WB stock is not trading this morning. Not sure what that means.
In related news, Standard & Poor's Ratings Services on Monday placed Citigroup's AA rating on review for a possible downgrade.
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment