Citigroup (C) to acquire the banking operations of Wachovia (WB, news, chart, volatility), according to an FDIC press release. The statement says, Citi will acquire “the bulk of Wachovia’s assets and liabilities.” Under the terms, Citi will absorb $42 billion of losses on $312 billion in loan. FDIC takes losses byond that. Citi has granted the FDIC $12 billion in preferred stock and warrants to compensate for the risk. WB trading below $1.00, down from Friday’s close of $10 per share. Citi shares down 4.2 percent.
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Frederic Ruffy is a well-known trader, writer, and strategist who has spent years educating investors and creating intelligent, insightful, unbiased market observations that are frequently cited by the Wall Street Journal and other financial publications. As senior analyst, Fred provides frequent and regular notes and daily updates for activity of interest.