Treasury delays its Citi sale

NY Post ^ | December 17, 2009 | AP

[Scanian]

Citigroup Inc. said it is selling a huge chunk of its stock at a steep discount to raise the cash it needs to repay bailout funds and free itself from government support.

But the government backed out of selling any of its 34 percent Citi stake, apparently due to the tepid investor response and the weak price garnered by the $20.5 billion equity offering -- described by Citigroup as the largest in history.

Citigroup said it is selling 5.4 million common shares at $3.15 apiece, an 8.7 percent discount to yesterday's close. The bank is also selling 35 million tangible equity units, which can be converted into common stock at a later date, for $100 each.

[freekitty]

Imagine having your corporation stolen by your government of thugs and you have to pay it back by selling at a loss if I am reading this right.

Of course who knows who is in bed with who?

[pnh102]

Imagine having your corporation stolen by your government of thugs and you have to pay it back by selling at a loss if I am reading this right.

Citi wasn't "stolen." It was one of the original welfare queen banks that marched on Washington and demanded to be fed from the government teat because of the poor business decisions it made.

I for one am glad the government is raking them over the coals. They are a worthless entity (just like anyone else on welfare) and we'd have been better off if they had been allowed to collapse.

[freekitty]

I know that. They launder the money for the private slush funds. GE and Goldman Sachs each have their scummy roles too.