Bailout, Bank Failures, Current Events, Meltdown

Don’t call it a failure

  

From Reuters:

Citigroup Inc will buy the banking operations of Wachovia Corp in a deal assisted by the Federal Deposit Insurance Corp, the FDIC said on Monday.

Under the deal, struck in consultation with the Federal Reserve, the Treasury and President George W. Bush, depositors will be fully protected and no cost to the Deposit Insurance Fund is expected, the FDIC said.

“Wachovia did not fail; rather, it is to be acquired by Citigroup Inc on an open bank basis with assistance from the FDIC,” a statement on the FDIC’s website said.

It’s a failure in all but name only, with Wachovia getting swallowed up by Citibank. Along with Wachovia comes a whole heap of toxic California mortgage loans - which will promptly be transferred to the Government as part of the bailout making its way through Washington.

 

Failure, originally uploaded by Diana Pinto.

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