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Citi, Bank of America drop on nationalization concern
MarketWatch ^ | Alistair Barr

Posted on 02/20/2009 10:38:15 AM PST by jessduntno

Citi, Bank of America drop on nationalization concern By Alistair Barr, MarketWatch

SAN FRANCISCO (MarketWatch) -- Bank of America Corp. shares hit a record low and Citigroup Corp. stock slumped to an 18-year low Friday, as the two financial giants faced investors' concerns they may soon be nationalized.

Citi shares dropped 21% to $1.99, their lowest level since early 1991. Bank of America fell 17% to $3.27, and earlier touched a record low of $3.19, according to FactSet Research data.

A Citigroup spokesman highlighted the bank's high Tier 1 capital ratio, a measure of financial strength, and said it continues to cut assets on its balance sheet, reduce expenses and streamline its businesses for future "profitable growth." He declined to comment further.

Citi is not having conversations with the U.S. government about nationalization, Reuters reported, citing two unidentified people close to the bank. However, those people also said the U.S. Treasury has not disclosed much more to Citigroup than it has to the broader public about its plans for the banking sector. "We see no reason to nationalize a bank that is profitable, well capitalized and actively lending," said Scott Silvestri, a spokesman at Bank of America.

Chief Executive Ken Lewis said Thursday during a senior leadership meeting that policy officials in Washington have assured him nationalization isn't an option being considered, The Wall Street Journal reported Friday.

(Excerpt) Read more at marketwatch.com ...


TOPICS: Business/Economy; Politics/Elections
KEYWORDS: alert; analyst; banking; bho44; bhodjia; boa; citigroup; crisis; financials; nationalization
Nice job, you inept socialist Bstrds...keep scaring the market, you'll kill us all yet...Joe Biden might be the smartest guy in the administration...God help us...
1 posted on 02/20/2009 10:38:15 AM PST by jessduntno
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To: jessduntno

If I could be confident that they won’t nationalize, I’d buy up some of the better banks stocks like gangbusters...they’re seriously undervalued at the moment.


2 posted on 02/20/2009 10:40:29 AM PST by RockinRight (How do you like your Savior now, libs? Looks like Jimmy Carter is no longer the worst President...)
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To: RockinRight
Citi, Bank of America, Genworth Financial...all so low it's scary.

We need Obama to make a statement NOW!!! What a poor excuse for a CEO.

sw

3 posted on 02/20/2009 10:42:01 AM PST by spectre (sw )(Congress lied...the economy died)
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To: jessduntno
Give the ceo’s more money and planes, it will fix the problem. There is more than one sick bastard in this case.
4 posted on 02/20/2009 10:43:23 AM PST by org.whodat (Auto unions bad: Machinists union good=Hypocrisy)
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To: spectre

Obama wants this country to tank, it’s what he has wanted from the beginning


5 posted on 02/20/2009 10:44:18 AM PST by Sarah Barracuda
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To: RockinRight
...they’re seriously undervalued at the moment

LOL, and how many of them would be in Bankruptcy now if it were not for the tax payers money. Undervalued hell, they will never pay back the tax payers.

6 posted on 02/20/2009 10:45:16 AM PST by org.whodat (Auto unions bad: Machinists union good=Hypocrisy)
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To: org.whodat

“LOL, and how many of them would be in Bankruptcy now...”

You mean, where they should have gone?


7 posted on 02/20/2009 10:49:18 AM PST by jessduntno (Play it: http://www.cnbc.com/id/15840232?video=1039849853&play=1)
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To: org.whodat

“Undervalued hell, they will never pay back the tax payers.”

Why are we shareholders anyway? Or is a socialized banking system and centralized government a GOOD idea? I’ll take the capitalist system, thank you. GSE socialist experimentation got us into this, it ain’t going to get us out.

http://www.cnbc.com/id/15840232?video=1039849853&play=1


8 posted on 02/20/2009 10:53:03 AM PST by jessduntno (Play it: http://www.cnbc.com/id/15840232?video=1039849853&play=1)
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To: jessduntno
Nice job, you inept socialist Bstrds...keep scaring the market,

Fox Business channel is placing the blame squarely on Chriss Dodd for that "nationalization" comment.

9 posted on 02/20/2009 11:07:57 AM PST by Sarajevo (You're just jealous because the voices only talk to me.)
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To: RockinRight

>> If I could be confident that they won’t nationalize, I’d buy up some of the better banks stocks

For what it’s worth:

http://seekingalpha.com/article/121245-rating-the-top-12-u-s-banks-from-hidden-gems-to-zombies?source=article_sb_popular


10 posted on 02/20/2009 11:21:51 AM PST by Nervous Tick (Party? I don't have one anymore.)
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To: Nervous Tick

When can I stop making my mortgage payment to Citi?


11 posted on 02/20/2009 11:23:57 AM PST by CarmichaelPatriot
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To: TPluth

>> When can I stop making my mortgage payment to Citi?

YOU’RE STILL MAKING YOUR MORTGAGE PAYMENT??? OMG! HAHAHAHA

oops, sorry, from what I heard on the news I didn’t think there WERE any more suckas out there.

Well, stop NOW! Get in tune with HopeyChange! Besides, you’re singlehandedly keeping Citi from going boots up!


12 posted on 02/20/2009 11:27:41 AM PST by Nervous Tick (Party? I don't have one anymore.)
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To: Sarah Barracuda
The White House issued a statement saying they weren't considering nationalizing the banks. This stopped the bleeding in the financials for a few moments.

Obama will be removed from office before this country goes totally in the tank. I have to believe that.

13 posted on 02/20/2009 11:32:20 AM PST by spectre (sw )(Congress lied...the economy died)
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To: jessduntno

Im shocked the stocks are worth anything. It’s only the promise of government invervention on either the bailout or nationalization level that is keeping them afloat.

They issued trillions in paper and converted that paper *into* their assets. They have *no* actual assets against the trillions in redemptive paper they’ve issued.

They are catastrophically insolvent.

300 billion into the Citigroup blackhole meant 300 billion in cash was converted at the teller window in exchange for a 300 billion in their outstanding liabilities.

The Government can pour trillions into them. It’ll vanish the next day out the withdrawel window, and in exchange they’ll have fulfilled not a 10th of their outstanding obligations.


14 posted on 02/20/2009 11:34:51 AM PST by skipper18
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To: skipper18

Phelps Calls Treasury’s Toxic Asset Plan a `Non-Starter’

http://www.bloomberg.com/avp/avp.htm?N=av&T=Phelps%20Calls%20Treasury%27s%20Toxic%20Asset%20Plan%20a%20%60Non-Starter%27&clipSRC=mms://media2.bloomberg.com/cache/v8HzlEdywrwI.asf


15 posted on 02/20/2009 11:52:37 AM PST by jessduntno (Play it: http://www.cnbc.com/id/15840232?video=1039849853&play=1)
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To: org.whodat

Not ALL banks, but many banks are undervalued. There are plenty of banks under the radar that are doing just fine, but have low stock prices because of the simple fact that they’re banks.


16 posted on 02/20/2009 1:44:31 PM PST by RockinRight (How do you like your Savior now, libs? Looks like Jimmy Carter is no longer the worst President...)
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