For many thousands of Americans worried about their loans there has been some good news recently with the takeover of a troubled banking firm.

Citigroup announced on Monday that in co-operation with federal regulators they had agreed to take over Wachovia Corp's banking business and in the process secured $42 billion worth of outstanding loans.

"This morning’s decision was made under extraordinary circumstances with significant consultation among the regulators and Treasury. This action was necessary to maintain confidence in the banking industry given current financial market conditions.” said a spokeswoman from the US government.

This latest consolidation leaves the US banking market concentrated to previously unseen levels, with three big players making up a substantial chunk of the market. Citigroup, JP Morgan Chase and Bank of America now control 30% of the market.

Everyone involved has been playing down the impact on Wachovia customers, arguing that the deal was the best for everyone.

“There will be no interruption in services and bank customers should expect business as usual,” Said the spokeswoman.