Wow, another one goes…Not directly Real Estate but it will affect real estate directly.
NEW YORK (Reuters) – Citigroup Inc will buy the banking operations of Wachovia Corp in a deal assisted by the Federal Deposit Insurance Corp, the FDIC said on Monday.
Under the deal, struck in consultation with the Federal Reserve, the Treasury and President George W. Bush, depositors will be fully protected and no cost to the Deposit Insurance Fund is expected, the FDIC said.
“Wachovia did not fail; rather, it is to be acquired by Citigroup Inc on an open bank basis with assistance from the FDIC,” a statement on the FDIC’s website said.
Shares of Wachovia tumbled more than 80 percent in pre-market trading to below $2 per share. Citibank shares were up about 3 percent to $20.54.