Another day, another bank takeover… This time it’s Citigroup, Inc. (C) acquiring the banking assets of Wachovia Corp. (WB) for $2.1 billion in stock. They are also assuming $53 billion in Wachovia debt.
Once again, the FDIC orchestrated this takeover (with help from the Treasury Department and the Federal Reserve). In this case, however, the FDIC may wind up on the hook for losses in connection with Wachovia’s mortgage portfolio. As was the case with the WaMu takeover, the transition should be seamless for bank customers.