Citigroup swallows up Wachovia

FDIC provides 'assistance,' says bank didn't fail

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In the latest consolidation of the banking industry brought about by the credit crunch, Citigroup Inc. will absorb up to $42 billion in losses on loans on Wachovia Corp.’s books to acquire the Charlotte, N.C.-based company’s banking operations.

The Federal Deposit Insurance Corp. is on the hook for losses above and beyond that amount, but does not expect to draw on its Deposit Insurance Fund.