US Fed agrees to Wachovia takeover by Wells FargoOctober 13th, 2008 - 1:53 pm ICT by IANS
Washington, Oct 13 (DPA) The US Federal Reserve Bank has approved the takeover of ailing Wachovia Corp by Wells Fargo and Co of San Francisco.The Fed publicized the decision in an unusual Sunday afternoon announcement, in a move likely to be timed to ease fears on the global financial markets.
Wells Fargo, which battled New York-based Citigroup for ownership of the forth-largest US bank, will take ownership of Wachovia by a share swap deal worth 15 billion dollars, propelling itself to the top of the US market for non-corporate clients.
Charlotte, North Carolina-based Wachovia, is one of the many victims of the financial crisis, holding large portfolios of toxic mortgages and is poised to suffer further losses.
Wachovia has about 3,300 outlets, mainly on the eastern coast and in Midwest states.
The Fed’s approval for the deal was widely expected after Citigroup’s pullout Thursday.