Wachovia "Merges" with Citi

Another one bites the dust. While this financial crisis is difficult for almost everybody, it must be especially painful for bank employees. If you are a Wachovia customer, you can expect to access accounts and use your money as usual.

Wachovia became the latest bank failure to take the spotlight over the weekend. Citigroup agreed to buy Wachovia assets, and secured a deal with the FDIC to limit losses beyond a certain point. In return, Citi will pay Wachovia $2.1 billion and offer equity to the FDIC. The deal has not yet been approved by regulators or Wachovia shareholders.

Wachovia's purchase of Golden West assets several years ago was a major contributor to the bank's failure.

Further reading:

• How Bank Failures Work
• UNCC professor foresees 3,000 local job cuts (but glad it wasn't Wells Fargo)