Citi
- Thread starter kinggyppo
- Start date
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.
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.
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
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.
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.