[rabscuttle385]

Citigroup will absorb up to $42 billion of losses from Wachovia's $312 billion loan portfolio, with the FDIC covering any remaining losses, the government agency said Monday.

Wachovia has failed...it's FDIC Monday!

[Think free or die]

I just spoke with our financial advisor at Wachovia Investment Group. He said that people there were completely caught by surprise, and had no idea the debt situation was so dire. There seems to be some question as to whether the investment group is going to Citi, but he thinks based on his most recent e-mail that Wachovia ISG is going to Citi. His reading on the timing of the move is that the Feds thought the debt was too high and pushed the move to Citi rather than have Wachovia become part of the bailout process.

We followed our advisor when he came over from Merrill Lynch, because we found him to be an honest man and responsive. If not for him, we'd have dumped Wachovia, because the banking side of their operations was a perennially screwed up mess. I had to chase numerous clerical mistakes, missing documents, errors on tax documents, etc. If Citi runs a tight ship, I'll probably be happy for the change.