Citi (C) Already In Talks to Buy Another Regional Bank -WSJ

According to an article in the Wall Street Journal, rumor has it that Citigroup (NYSE: C) is already in talks to buy another regional bank.

Just a month after Citi abandoned talks with Wachovia (NYSE: WB), the WSJ reports that the bank has been in talks with some regional bank that overlaps geographically with Citi's retail-banking unit, although the exact bank has not yet been determined. According to the sources, a deal could be hammered out by the end of this month.

As the WSJ article points out, while no other regional bank can come close to Wachovia in size, many believe that an acquisition would "pump up morale at Citigroup and ease the embarrassment of the Wachovia mess."

Additionally, Citigroup could also be eyeing a US regional bank in order to strengthen its domestic deposits as the credit crisis is now materially impacting economies around the world. In other words, Citigroup's global operations have become another source of pain and as the credit crunch deepens, US banks will likely fare the best.

Citigroup Inc., doing business as Citi, provides a range of financial products and services to consumer and corporate customers in the United States and internationally.

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