Open

Coming up

Don't miss

Replay


LATEST SHOWS

MEDIAWATCH

On the frontline of horror: editing images from warzones

Read more

AFRICA NEWS

Ebola: UN sets target of 60 days to turn things around

Read more

DEBATE

Europe's Desperate Seas: Migrant Deaths Crossing Mediterranean Top 3,000 in 2014

Read more

ENCORE!

'All is Well' for Lisa Simone

Read more

BUSINESS DAILY

EU questions Apple's tax deals in Ireland

Read more

FOCUS

The Iraqi TV show where victims confront terrorists

Read more

REPORTERS

Video: Syrian student risks her life to film IS group stronghold

Read more

LIFESTYLES

Forgotten and fictional sports

Read more

DEBATE

Modi in America: India's Prime minister on triumphant US tour

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)