Yet another bank has sought shelter from the fallout of mortgage-related losses as Wachovia Corp. agreed yesterday to sell its banking operations to Citigroup Inc. in a deal facilitated by the Federal Deposit Insurance Corp.

Citigroup will pay $2.16 billion in stock - about $1 per share - and assume Wachovia's senior and subordinated debt, worth approximately $53 billion. In addition, Citigroup will assume responsibility for the first $42 billion of losses on a $312 billion pool of loans identified as risky assets, with the FDIC picking up the rest in return for $12 billion in preferred stock and warrants.

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