Don't miss

Replay


LATEST SHOWS

EYE ON AFRICA

US Secretary of State John Kerry commits to ramping up military assistance to Nigeria

Read more

MEDIAWATCH

First burkinis, now veils

Read more

THE DEBATE

Syria: What about the Kurds? Fighting on three fronts (part 1)

Read more

THE DEBATE

Syria: What about the Kurds? Fighting on three fronts (part 2)

Read more

FOCUS

In Niger the maluntrition of children is worsening

Read more

IN THE PAPERS

'A tested Europe shows a united front'

Read more

IN THE PAPERS

Sarkozy: 'Everything for France'

Read more

THE DEBATE

Rio's Legacy: Were the Olympics worth it for Brazil? (part 1)

Read more

BUSINESS DAILY

French diesel emissions inquiry 'omitted crucial details'

Read more

Citi's takeover of Wachovia secures US backing

Text by AFP

Latest update : 2008-12-10

US financial authorities have approved Citigroup's plans to take over the banking operations of troubled rival Wachovia. Federal authorities will shoulder Citigroup in assuming Wachovia's losses, which amount to up to 312 billion dollars.

US authorities said Monday they had facilitated a takeover of Wachovia's banking operations by Citigroup in a deal that gives the government a stake in Citi.

Citigroup will assume up to 42 billion dollars of losses on a 312 billion dollars of a pool of loans held by Wachovia, based in Charlotte, North Carolina, the Federal Deposit Insurance Corp. said.

Under the agreement, the FDIC will absorb losses beyond that and take a stake in Citigroup for essentially guaranteeing the losses Citigroup absorbs.

Citigroup has granted the FDIC 12 billion dollars in preferred stock and warrants to compensate the FDIC for bearing this risk, the FDIC said in a statement.

Date created : 2008-09-29

COMMENT(S)