Citi Moves One Step Closer To Toast (US May Take 40%+ Stake) (C)
Henry Blodget|Feb. 22, 2009, 9:29 PM
The government is in talks to convert most of its $45 billion of preferred stock in Citi (C) to common stock, the WSJ says. Other preferred shareholders might follow suit.
This plan would raise the government's ownership of Citi to 40%+ from just under 8%. Common shareholders would be severely diluted, especially if other preferred holders convert.(excerpt) read more at businessinsider.com
Monday, February 23, 2009
Citibank moves closer to nationalization
The US government is getting ready to convert their preferred shares of Citibank into common shares. This will give them a 40% ownership if Citibank. President Obama has tried to halt talk of a government takeover of Citibank and Bank of America. Moves like this make Obama's press statements seem very disingenuous.