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Citigroup finalizes deal to make U.S. largest holder-Dilution to ensue .....
Marketwatch ^
| Greg Morcroft, MarketWatch
Posted on 06/10/2009 9:55:40 AM PDT by Ernest_at_the_Beach
Dilution to ensue as embattled bank bolsters capitalization
NEW YORK (MarketWatch) -- Citigroup Inc. has finalized an agreement with the federal government that will recapitalize the company with $58 billion of new common stock and make the U.S. taxpayer its largest shareholder, the bank said Wednesday.
Moving to bolster its capitalization, Citigroup /quotes/comstock/13*!c/quotes/nls/c (C 3.52, +0.11, +3.23%) unveiled an agreement under which the government will exchange up to $25 billion of the bank's preferred securities for interim securities and warrants.
The deal, which puts a conversion price of $3.25 a share on Citi common, was originally supposed to be completed in April but was delayed by negotiations with the government. Shares of Citigroup added more than 4% to change hands at $3.55 in morning action.
(Excerpt) Read more at marketwatch.com ...
TOPICS: Business/Economy; Extended News; Government; News/Current Events
KEYWORDS: bailoutnation; citibank; govbank
To: Ernest_at_the_Beach
I will cancel my Citi credit card. I will boycott all bailed-out businesses.
2
posted on
06/10/2009 9:58:11 AM PDT
by
matt1234
To: matt1234
Sorry, but Bank of America stock is artificially depressed by those who are afraid. Right now, at $12 a share, is the time to buy. I missed US steel at $20 a share (it’s now over $30). I won’t miss this boat.
3
posted on
06/10/2009 9:59:47 AM PDT
by
domenad
(In all things, in all ways, at all times, let honor guide me.)
To: Ernest_at_the_Beach
Citigroup’s biggest shareholder is Prince Alwaleed bin Talal. I wonder if this subject came up when Obama was visiting King Abdullah in Riyadh.
4
posted on
06/10/2009 10:01:22 AM PDT
by
kabar
To: kabar
Not anymore. The biggest shareholder is the US treasury.
Buying a huge stake at $3 is a winning trade, by the way. It won't fail.
5
posted on
06/10/2009 10:02:52 AM PDT
by
JasonC
To: Ernest_at_the_Beach
Just ducky. My mortgage is held by Citi.
6
posted on
06/10/2009 10:04:56 AM PDT
by
redhead
(Keep talking, Sarah. You're driving them NUTS!)
To: redhead
To: matt1234
.../cry. They hold my mortgage.
8
posted on
06/10/2009 10:16:35 AM PDT
by
Danae
(Amerikan Unity My Ass)
To: Ernest_at_the_Beach
What changes for those who have mortgages held by Citi? The GOVERNMENT now owns my mortgage. No I am not freakin happy about that.
9
posted on
06/10/2009 10:17:48 AM PDT
by
Danae
(Amerikan Unity My Ass)
To: Ernest_at_the_Beach
So I can stop paying my mortgage now, right? /sarc
To: BuckeyeTexan
So I can stop paying my mortgage now, right? I don't know - are you a member of the AAU or the President's cabinet?
11
posted on
06/10/2009 11:27:23 AM PDT
by
The Duke
(I have met the enemy, and he is named 'Apathy'!)
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