Citigroup needed to buy Wachovia to Survive
June 8, 2009
By MoneyAisle
According to the News & Observer, Citigroup needs to raise $10 billion and decrease payouts to shareholders in order to pay for the Wachovia deal.
“Citigroup leaders, in explaining their decision to buy Wachovia, cited Wachovia’s strong consumer banking presence”, an area in wish Citi wants to expand.
By buying Wachovia, Citigroup will have over $600 billion in national deposits, an amount triple than what it currently has.