codeboaz on Monday, September 29

"For Citigroup, the acquisition should go a long way toward giving CEO Vikram Pandit the retail banking franchise that has always been the one void in the Citi empire. And with that retail network comes more than $400 billion in deposits—a cheap, stable source of funding that provides a solid foundation at a time when many other funding sources are drying up overnight. And as part of the deal, Citi agreed to absorb $42 billion in prospective losses from Wachovia's $312 billion loan portfolio. The remaining $270 billion exposure, however, is being handed off to U.S. taxpayers in exchange for $12 billion in Citi preferred stock and warrants."