The FDIC and Citibank have agreed to purchase Wachovia. The bank acquisition will allow Citigroup to takeover Wachovia's depository institutions and assume its debt. The US government also has a stake in the deal.
The bank's troubles began after mortgage-related losses. The bank agreement was taken in with Federal Reserve and Treasury Secretary Henry Paulson. The deal also gives the US government a stake. Wachovia depositors will be fully protected and no cost to the Deposit Insurance Fund is expected.
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