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The article reports on a decision from Wachovia Corp. to become involved in an $80 billion investment fund being developed by Citigroup Inc., J. P. Morgan Chase & Co. and Bank of America Corp., The pool has been developed to acquire mortgage assets and help financially struggling credit markets in the U.S.

The article reports that Citigroup Inc. has agreed to buy most of the assets of Wachovia Corp. for almost $2 billion dollars. Citigroup will assume ownership of Wachovia's $320 billion portfolio of mortgage-related assets, although the U.S. government has agreed to absorb any losses that exceed $42 billion.

The article reports that as worries in the financial markets drove down investor confidence in Wachovia Corp., chief executive officer (CEO) Robert Steel agreed to a $2 billion deal for Citigroup Inc. to take over the operations of Wachovia and assume its debt. The news caused investors and analysts to fear that other U.S. banks would have the same fate. Shares of regional banks plunged on September 29, 2008, including a 63.3% drop in the share value of National City Corp.