NEW YORK (AP) -- In the latest byproduct of the widening global financial crisis, Citigroup Inc. will acquire the banking operations of Wachovia Corp. in a deal facilitated by the Federal Deposit Insurance Corp. Citigroup will absorb up to $42 billion of losses in the deal, with the FDIC covering any remaining losses, the government agency said Monday. Citigroup also will grant the FDIC $12 billion in preferred stock and warrants. The deal greatly expands Citigroup's retail outlets and leaves it among the U.S. banking industry's Big Three along with Bank of America Corp. and J.P. Morgan Chase & Co. Citigroup to buy Wachovia banking operations: Financial News - Yahoo! Finance I really do not agree with the FDIC stepping in on these banks before they fail and I DAMN sure do not agree with the FDIC receiving 12 billion in preferred stock and warrants. Looks like Wachovia shareholders just got diluted into oblivion.