i still can't figure out the prices of the preferreds. they are trading between 32-40 cents on the dollar.
Citi realy is the crappiest bank in the world. You poor, dumb and lazy? Come in and get your money! Politicians in my country have called them a criminal organisation I wonder if they'd repeat such a statement now the US government owns them.
Thanks for all the interesting discussion. Please correct me if I am wrong, 1. The conversion of preferreds to common sholdn't change the value of the firm, only the value of the SP [dilution]. 2. This will shore up the weakest part of C's balance sheet. As they have more than adequate Tier 1 capital. 3. There is no new money being put in by investors or the govt. 4. Dividends on preferreds are suspeneded to act as an incentive for holders to switch from preferreds to common. After you have seen the dump the move should be quite positive for C, bit I have no idea what will happen to the SP. Disc Long on the SP500 acervage price 59.
The CFO said the talks with the government started friday of last week. The 10day avg price of the stock leading up to friday was $3.25 Looks like a fair deal without a real 'premium' from that point of view
Interesting part about the "Shareholder Vote", its almost a joke. The government made the management sign something that offers no choice to shareholders, if they vote no they will dilluted into oblivion and pay huge dividends. Lets make no mistake about this, US Banks are being nationalized. USG doesnt own majority stakes but already has stripped the powers of shareholders and management http://www.citigroup.com/citi/press/2009/090227a.pdf
Who is Citi??? Oh you mean that bank that shares dropped by almost $1 today and at this rate the stock will be at $0 next Tuesday. Surely the big boys will get it back over $2 one more time to drag a few more suckers in. What is the difference bewteen Citi and BAC? There are only a few and 1 being $2.50 a share higher than the other because both of the banks days are numbered! Assuming they both go under then maybe JPM could be a buy.