Bye Bye Wachovia

So Citibank bank is the lucky new of Wachovia. Wonder how all the Option ARMs will play out. That $122 billion will be a nice chunk owned by us taxpayers. Here is the FDIC Press release regarding Citigroup Inc. to Acquire Banking Operations of Wachovia. Lets take a look -

Citigroup Inc. will acquire the banking operations of Wachovia Corporation; Charlotte, North Carolina, in a transaction facilitated by the Federal Deposit Insurance Corporation and concurred with by the Board of Governors of the Federal Reserve and the Secretary of the Treasury in consultation with the President. All depositors are fully protected and there is expected to be no cost to the Deposit Insurance Fund. Wachovia did not fail; rather, it is to be acquired by Citigroup Inc. on an open bank basis with assistance from the FDIC.

"For Wachovia customers, today's action will ensure seamless continuity of service from their bank and full protection for all of their deposits." said FDIC Chairman Sheila C. Bair. "There will be no interruption in services and bank customers should expect business as usual."

Notice how they state the bank did not fail. Nice Spin.