That's madness ... Citi could go to pennies. Might not, but why on earth take that gamble? I sure hope you are young and haven't saved much yet.
Here's what the feds are going to send the taxpayers: <IMG SRC=http://www.elitetrader.com/vb/attachment.php?s=&postid=2191591>
Pretty crazy putting your 'life savings' into C. Its probably headed lower. However, I admit I bought a bunch of 5 calls friday in case something positive was worked out over the weekend. its a few grand lotto ticket but worth it if it pans out.
Makes it go up: 1. Sell off business unit 2. Private investor 3. Buyout Citi takes mild loss: 1. Citi says nothing. Citi takes large loss: 1. Government bailout. 2. Ch. 11
just reached a deal on Citi apparently. 300 billion "backstop" on Bad Assets 20 billion infusion @ 8% not sure on equity stake OR management changes.
Up. We just don't want the government to get the preferred. If they do the common will take a bath. Doesn't look like they did