Citigroup Buys Banking Operations of Wachovia

Citigroup will pay $1 a share, or about $2.2 billion, according to people briefed on the deal. The F.D.I.C. said that the agency would absorb losses from Wachovia above $42 billion and that it would receive $12 billion in preferred stock and warrants from Citigroup in return for assuming that risk.