Citi and Wachovia Reach Agreement-In-Principle for Citi to Acquire Wachovia's Banking Operations in an FDIC-Assisted Transaction

Will create leading U.S. retail bank with 9.8% U.S. market deposit share, and total deposits globally of $1.3 trillion

FDIC provides loss protection to Citi in support of transaction

More than $3 billion of estimated annualized expense synergies expected by year three through consolidation of overlapping functions

Citi to raise $10 billion in common equity and reduce quarterly dividend to 16 cents per share to maintain strong capital position

Citi (NYSE: C) today announced it has reached an agreement--in-principle to acquire all of the banking subsidiaries of Wachovia Corporation (NYSE: WB), creating the largest U.S. bank by total deposits.

Genworth CEO Applauds SEC Short Selling Ban

The Securities and Exchange Commission's decision to temporarily ban investors from destructive speculation with an intent to drive stock declines is a step in the right direction, according to Genworth Chief Executive Officer Michael D. Fraizer.

The SEC said on Friday it had called for an immediate halt to short selling on 799 financial stocks, including Genworth. In short selling, traders borrow shares of stock and sell them, hoping the price of the shares declines and the shares can be bought back a lower price. The SEC ban will last for 10 days, but could be extended for up to 30 days.

Fitch Downgrades Lehman Brothers Holdings Inc. to 'D' on Bankruptcy Filing

Fitch Ratings has downgraded the long- and short-term Issuer Default Ratings (IDRs) and outstanding debt ratings of Lehman Brothers Holdings Inc, (LBHI), parent of Lehman Brothers Inc and other subsidiaries as follows:

--Long-term IDR to 'D' from 'A+';
--Short-term IDR to 'D' from 'F1';
--Senior debt to 'CCC' from 'A+';
--Subordinated debt to 'C' from 'A';
--Preferred stock to 'C' from 'A'.

Fitch has also removed LBHI's long- and short-term ratings from Rating Watch Negative, where they were originally placed on Sept. 9. Today's rating action follows LBHI's declaration of bankruptcy. The ratings of the subsidiaries will remain on Rating Watch Negative and will likely be downgraded as additional information becomes available.

Bank of America Buys Merrill Lynch Creating Unique Financial Services Firm

Combines leading global wealth management, capital markets and advisory company with largest consumer and corporate bank in U.S.

Bank of America Corporation today announced it has agreed to acquire Merrill Lynch & Co., Inc. in a $50 billion all-stock transaction that creates a company unrivalled in its breadth of financial services and global reach.

"Acquiring one of the premier wealth management, capital markets, and advisory companies is a great opportunity for our shareholders," Bank of America Chairman and Chief Executive Officer Ken Lewis said. "Together, our companies are more valuable because of the synergies in our businesses."

"Merrill Lynch is a great global franchise and I look forward to working with Ken Lewis and our senior management teams to create what will be the leading financial institution in the world with the combination of these two firms," said John Thain, chairman and CEO of Merrill Lynch.