Citigroup dives despite Prince Alwaleed stake

The Times (UK) ^ | November 20, 2008 | Tom Bawden

[PotatoHeadMick]

Fears that Citigroup would need a huge new capital injection intensified on Thursday as a public show of support for the group’s management by Prince Alwaleed bin Talal with a pledge to boost his stake to 5 per cent failed to prevent a big fall in its share price.

The shares fell by 26.56 per cent to $4.70 in late afternoon trading after losing nearly a quarter of their value the previous day.

Citigroup is expected to need up to $100 billion (£67.5 billion) in the next 18 months from another government bailout. Prince Alwaleed, the Saudi Arabian billionaire, is Citigroup’s largest individual shareholder with a stake of just under 4 per cent. He pledged his support for the bank, saying he “strongly believes” that the stock is “dramatically undervalued” after falling nearly 80 per cent this year.

[PotatoHeadMick]

OK today's Friday no one wants to be caught holding a falling knife over the weekend, how much is it going to fall today? Will Citi still be in business on Monday morning?

[clamper1797]

BTT

[Attention Surplus Disorder]

The Prince has made a complete round trip, has he not? Didn’t he buy Citi common in 1991 for $5, $7?

[hinckley buzzard]

Fridays often end on an up note, as the week's cowboy traders close out their short positions before said weekend. The downdraft will resume on Monday.