U.S. Eyes Large Stake in Citi
Futures spiked as this news hit the wire. Citi shares in Japan were up 12-15%.
Source: WSJ
Taxpayers Could Own Up to 40% of Bank’s Common Stock, Diluting Value of Shares
Citigroup Inc. is in talks with federal officials that could result in the U.S. government substantially expanding its ownership of the struggling bank, according to people familiar with the situation.
While the discussions could fall apart, the government could wind up holding as much as 40% of Citigroup’s common stock. Bank executives hope the stake will be closer to 25%, these people said.
Any such move would give federal officials far greater influence over one of the world’s largest financial institutions. Citigroup has proposed the plan to its regulators. The Obama administration hasn’t indicated if it supports the plan, according to people with knowledge of the talks.
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market seems to love it
Hi TSS,
I kept 3,000 short FAS over the weekend (unhedged!) so imagine my shock on Sunday
Funny how on Friday they say “no nationalization” and then this comes out. Is this not nationalization, even if partial?
Any new longs on your radar?
There is no plan in place with the new administration – even though they say they don’t care about the daily fluctuations of the market, it’s amazing how news leaks…
Anything I did like on the long side, had its legs kicked out from underneath it today. I closed my NFLX,PCLN and MYGN positions on Friday. I am long GLD from some time ago and RGLD which I bought off the 50 this morning.
I’m content here to add to my gld position on a p/b to the 92-93 area if I get a shot and RGLD as/if she moves up…