Dividend.com: Citi to Cut Payout

Citigroup Buys Wachovia, Will Raise $10 Billion, Slashes Dividend

In light of Citigroup(C Quote) buying Wachovia's(WB Quote) banking subsidiaries, Citigroup is expecting to raise $10 billion in common equity and cut its quarterly dividend to 16 cents a share, effective immediately.

Following completion of the acquisition, Citigroup will have more than $600 billion in deposits in the U.S., about a 9.8% market share. Total deposits worldwide will be $1.3 trillion. Compare that to Japan's Bank of Tokyo Mitsubishi USJ, which alone has $1.1 trillion in deposits. As of 2004, Japan had $5.3 trillion in deposits, which is slightly below what we have in the U.S. as of today.

For the record, the FDIC noted that Wachovia did not qualify as a "failed" bank, unlike Washington Mutual, which collapsed last Thursday, only to be subsequently purchased by JPMorgan Chase(JPM Quote) buying . ...