I have two bank accounts, Wamu and Citi.

Last Thursday Wamu declared bankruptcy and its retail banking assets were sold off to JP Morgan Chase for 1.9 billion dollars. I did not rush to a Wamu branch to join the frenzied masses who were withdrawing every penny from their accounts, giving short comfort in being told that their money was FDIC insured.

Instead I logged onto wamu.com and read the message from Chase that everything was staying the same – for the next six months anyway…..

Today, as the DOW plunges, (11.35am EST) 300 points – sending a warning to Congress on what will happen if the bailout plan fails to shore up confidence in the market, Citi announces that it has bought out Wachovia’s retail banking operations for 2.2 billion dollars.

Unlike the transaction that wiped out a $1.35 billion investment by David Bonderman‘s private equity firm TPG Inc, the lead investor in a $7 billion capital raising by Wamu in April, this is no investment in Wachovia, this is a firesale.

And Citi may be one of the few global banks that will look back at this transaction in the middle of the worst financial crisis since the Great Depression as one of its smartest moves. It also means that Citi now takes over the mantle from JP Morgan Chase as the biggest holder of retail deposits.

Although in this climate  who knows how long this record will last!!