Sep. 30--Wachovia Corp. said today that it remains "well capitalized" following Monday's announcement that it plans to sell its banking and other operations to Citigroup Inc.

Wachovia said it can support its operating subsidiaries including Wachovia Securities and Evergreen Investments, which are set to remain as part of a standalone company after the Citi deal. The Charlotte bank also said the Federal Reserve stands ready to provide liquidity as needed.

New York-based Citi is buying Wachovia with Federal Deposit Insurance Corp. assistance that is not dependent on a bailout plan stalled in Congress, the bank said. The Citi deal still needs Federal Reserve and shareholder approval. The banks said the $2.1 billion sale is expected to close by year end.

Meanwhile, Citi issued a statement today saying it is "committed to the orderly consummation of the transaction, including the viability of the businesses that will remain with Wachovia Corporation." Citi continued to conduct normal business with the businesses it expects to acquire as well as the units that remain as part of Wachovia, it said.

The Wall Street Journal today San Francisco-based Wells Fargo & Co. had been poised to buy Wachovia for a deal in the "teens per share" offer until it got cold feet about Wachovia's loan book Sunday afternoon. Citi's deal is essentially worth $1 per share, although it will pay the stock to Wachovia, the company, not individual shareholders.

By Sunday evening, the FDIC had taken over the sale process, the Journal reported. Shortly after 4 a.m. Monday, the agency informed Wachovia chief executive Bob Steel about the deal arranged with Citi, the Journal said.

Under the agreement, Citi is assuming $312 billion in troubled assets from Wachovia. But it's only responsible for the first $42 billion in losses.

The Journal said the motivating factor to do a deal wasn't a run on the bank's deposits. Instead, the bank faced a possible downgrade by ratings agencies on Monday that could have sowed fear among investors and customers. It also would have increased the bank's borrowing costs as a round of debt came due.

Wachovia shares rose more than 63 percent Monday to $3.

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