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Citigroup to buy US bank Wachovia
Wachovia has been hit by problems in the US housing market
Wachovia, the fourth-largest US bank, is being bought by larger rival Citigroup in a rescue deal backed by US authorities.
Wachovia customers were told the action would provide "full protection for all their deposits", and that the bank would continue to operate as normal.
Under the deal, Citigroup will absorb up to $42bn (£23bn) of Wachovia losses.
US authorities said the decision to back the sale had been made "under extraordinary circumstances".
The comment came from the Federal Deposit Insurance Corporation (FDIC), the government body that guarantees the safety of banking deposits.
"This action was necessary to maintain confidence in the banking industry given current financial market conditions," said FDIC chairman Sheila Bair.
Mortgage debt
Citigroup is taking on $312bn of Wachovia loans.
http://news.bbc.co.uk/2/hi/business/7642126.stm
Wachovia has been hit by problems in the US housing market
Wachovia, the fourth-largest US bank, is being bought by larger rival Citigroup in a rescue deal backed by US authorities.
Wachovia customers were told the action would provide "full protection for all their deposits", and that the bank would continue to operate as normal.
Under the deal, Citigroup will absorb up to $42bn (£23bn) of Wachovia losses.
US authorities said the decision to back the sale had been made "under extraordinary circumstances".
The comment came from the Federal Deposit Insurance Corporation (FDIC), the government body that guarantees the safety of banking deposits.
"This action was necessary to maintain confidence in the banking industry given current financial market conditions," said FDIC chairman Sheila Bair.
Mortgage debt
Citigroup is taking on $312bn of Wachovia loans.
http://news.bbc.co.uk/2/hi/business/7642126.stm
