Citigroup Inc. to Acquire Wachovia

Updated 10/3/08:

Wachovia said Friday it agreed to be acquired by San Francisco-based Wells Fargo & Co. in a $15.1 billion all-stock deal that trumps Citigroup’s plan to acquire Wachovia’s banking operations and avoids government assistance.

Citigroup  will acquire the banking operations of Wachovia. All depositors are fully protected and there is expected to be no cost to the Deposit Insurance Fund.

“For Wachovia customers, today’s action will ensure seamless continuity of service from their bank and full protection for all of their deposits.” said FDIC Chairman Sheila C. Bair. “There will be no interruption in services and bank customers should expect business as usual.”

The special promotional 7 month CD rate of 4.00% APY is still active on Wachovia’s website. Take advantage of one of the best CD rates, CitiBank might withdraw the offer soon because the rate on a 9 month CD offered at citibank.com only has a 3.25% APY.