Citigroup group buys Wachovia's banking business

Wachovia announced today that it will sell its retail bank, corporate and investment bank and wealth management businesses to Citigroup. Wachovia Corporation will remain a public company with two main operating subsidiaries: Wachovia Securities, the nation’s third largest brokerage firm, and Evergreen Asset Management, a leading provider of asset management services.

Citigroup will pay $2.1 billion to Wachovia and assume the senior and subordinated debt of Wachovia Corporation. The transaction is expected to close before year-end.