The Real Deal Miami

Citigroup buys Wachovia’s banking operations

September 29, 2008 10:47AM

Citigroup Inc. is acquiring the banking operations of Wachovia Corp., absorbing up to $42 billion in losses. The Federal Deposit Insurance Corp. facilitated the deal, and will cover any remaining losses. Citigroup will also grant the FDIC $12 billion in preferred stock and warrants. Some fear the government’s $700 billion bailout won’t save Wall Street.