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Yikes! It’s like a real life game of PacMan.
The F.D.I.C. said that the agency would absorb losses from Wachovia above $42 billion and that it would receive $12 billion in preferred stock and warrants from Citigroup. |
“Wachovia did not fail,” the F.D.I.C. said, “rather it is to be acquired by Citigroup Inc on an open bank basis with assistance from the F.D.I.C. |
Federal regulators had pressed for the sale on Sunday night. The sale would further concentrate Americans’ bank deposits in the hands of just three banks: Bank of America, JPMorgan Chase and Citigroup, whichever bank acquired Wachovia would control more than 30 percent of the industry’s deposits. |
| Together, those three would be so large that they would dominate the industry, with unrivaled power to set prices for their loans and services. |
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