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Wachovia Retains Wachovia Securities, Exits Banking Business

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By Bryan Patrick
29 September 2008 @ 03:09 pm EST

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Wachovia Corp. exited the banking business on Monday, selling its operations to Citigroup Corp. while retaining its brokerages Wachovia Securities and AG Edwards while also holding on to Evergreen Investments.

Quotes

WB	4.13	0.03
C	3.77	-0.94

There are no changes to Wachovia's board of directors. Wachovia Corp.s headquarters will remain in Charlotte, NC. While Wachovia Securities headquarters will remain in St. Louis, MO.

"During recent weeks, the financial landscape has changed significantly and presented us with unprecedented challenges," said Robert K. Steel, CEO and President of Wachovia in a statement.

Wachovia suffered heavy losses in the real estate market, buying bank Golden West in 2006 before the housing sector crashed.

"Today's announcement is the best alternative for the company, enabling a resolution on the Golden West portfolio," Steel said.

Citigroup will pay $2.1 billion to Wachovia and assume senior and subordinated debt of Wachovia Corporation. It is expected to complete the sale before the end of the year. The U.S. government's Federal Deposit Insurance Corp. assisted.

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