Wachovia keeps securities brokerage unit

US banking giant Citigroup Inc have announced the deal where it buys Wachovia Corps. Banking operations, this will give them around 3,300 more offices in 21 states in the deal that cost them about $2.16 billion.

Once Citigroup completes the Wachovia takeover the combined firm will have more than $600 billion in deposits and around 4,300 US bank offices and for a giving Citigroup a 9.8 percent share of the US banking market

Regulators say that the North Carolina lender Wachovia didn’t fail, Wachovia investors will only get $1 a share as the lender loses its biggest unit; back in April 2006 the each share value topped $59. The Federal Deposit Insurance Corp who aided in broking the deal between Wachovia and Citygroup said that all depositors will be protected.

The deal took place only hours before the US congress rejected President Bush plea for the US governments $700 billion bailout. On today’s trading Citigroup shares dropped 12 percent to $17.75.

Read the full article: bostonglobe