The FDIC has helped ailing bank Wachovia reach a deal with Citigroup in which the banking giant would absorb $42 billion of Wachovia's loan losses, and the FDIC would absorb the rest. “For Wachovia customers, today’s action will ensure seamless continuity of service from their bank and full protection for all of their deposits,” FDIC chairman Sheila C. Bair told the Times in a statement, emphasizing that the bank did not fail. “There will be no interruption in services and bank customers should expect business as usual.” Citigroup will now control 30 percent of America's deposits, placing it in the orbit of JPMorgan Chase and Bank of America, which over the last few weeks have become so huge and powerful that they now have unprecedented power to set loan rates. The negotiations for the deal took place over the weekend, during which Citigroup's only competition for the bank was fellow lender Wells Fargo. Citigroup CEO Vikram Pandit is personally overseeing the talks to finalize this deal, as it could mark the end of the group's long search for a way to enter the consumer banking industry.
Most Viewed Stories
Report: Amber Heard and Johnny Depp Divorce
Anne Hathaway Calls James Corden the ‘Worst British Export Since Smallpox,’ Drops the Mic on The Late Late Show
We Probably Won’t Have True Detective to Kick Around Anymore (But We’ll Still Have Nic Pizzolatto)
The Real Housewives of New York City Recap: Talk of Shame
Report: Amber Heard and Johnny Depp Divorce
The Sad State of Game of Thrones’ Direwolves
Why Is Hillary Clinton Suddenly Tied in the Polls With a Widely Reviled Demagogue?
America Has Never Been So Ripe for Tyranny
The Americans Recap: One Tough Mother
In Defense of True Detective Season Two
Latest News from Daily IntelligencerBernie Sanders, Donald Trump Say They’ll Debate. Here’s Why It Could Happen.
A convergence of interests between the GOP nominee and the Democratic runner-up.Explaining Ben Shapiro’s Messy, Ethnic-Slur-Laden Breakup With Breitbart
“If you insult the stubby fingers and Cheeto face of their orange god-king, then they lose their minds. They absolutely lose it.”Several Arrests Made After Protesters Clash With Police at Anaheim Trump Rally
At least eight people were taken into custody.Fresh Intelligence: South Carolina Signs Restrictive Abortion Bill Into Law, While 11 Other States Sue the White House
Our roundup of the stories, ideas, and memes you’ll be talking about today.11 States Sue Obama Administration Over Guidelines Protecting Transgender Students
The suit calls Obama's policy a "massive social experiment" and objects to his interpretation of Title IX.Bernie’s Independent Voters Are Very Likely to Cast Ballots for HRC in the End
Sanders's appeal in the primaries has not been for swing-voting "true independents," but for leaners who are functionally Democrats.Audit: Hillary Clinton’s Use of a Private Email Server Violated Federal Rules
A new State Department audit challenges several claims the Democratic front-runner has made about her use of a private email server while serving as secretary of State.Rep. Scott DesJarlais Is One of Trump’s Biggest Boosters in Congress. He’s Also a Total Piece of Work.
As Establishment pols like Paul Ryan consider climbing onto the Trump bandwagon, they'll be joining some dubious early-birds.Picking Elizabeth Warren As Veep Probably Wouldn’t Cost Democrats a Senate Seat
Contra Harry Reid.Donald Trump Is Underwater With the All-Important ‘Writers of Literary Fiction’ Demographic
More than 400 writers have signed a petition protesting the Donald’s candidacy. Will the millions of Trump voters with McSweeney's subscriptions be swayed?
Former New Mexico governor Gary Johnson could become the #NeverTrump choice, muddling the electoral map.Donald Trump Suggests America’s First Latina Governor Is Too Lazy to ‘Do the Job’
New Mexico governor Susana Martinez was supposed to be the future of the Republican Party. Then Donald Trump happened.Why Is Hillary Clinton Suddenly Tied in the Polls With a Widely Reviled Demagogue?
One month ago, the general election was looking like a Clinton landslide. What changed? And will it last?Fresh Intelligence: Charleston Shooter to Face Death Penalty, While Ferguson City Attorney to Face the Music
Our roundup of the stories, ideas, and memes you’ll be talking about today.How Running for ‘Obama’s 3rd Term’ Became a Political Asset for Hillary Clinton
Her campaign used to worry about insulating her from Barack Obama's political problems. Not anymore.U.S. Seeks Death Penalty for Dylann Roof in Charleston Church Shootings
Based on "the nature of the alleged crime and the resulting harm."Protesters at New Mexico Trump Rally Throw Rocks, Bottles at Police
At least one arrest was made.In Georgia, Two Republicans Face Primary Challenges for Not Being Extremist Enough
One — Paul Broun — called evolution "lies from the pit of hell."Trump Campaign’s New Office Plan Will Keep Paul Manafort and Corey Lewandowski Away From Each Other
Paul Manafort gets a cushy floor in Trump Tower, while Corey Lewandowski gets raw space.Why Did Bernie Sanders Put an Obama-Hater on the Democratic Platform Committee?
Tapping Cornel West raises this and other questions.