Have citi quietly buy back 100% of the stock..then if there is even 1 short seller still there in the market, citi places a sell order at 5 billion dollars per share and 5 minutes later call the broker and say "I refuse you let you have anyone borrow our shares to short. Then there is a forced liquidation and the new 5 billion dollars per share price is what they have to buy it back at!
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Why doesn't Citi buyback its stock in the open market?
- Thread starter rida07
- Start date
C is the test on how dumb (corrupt?) the government is. they have bailout funds, they are allowed to buy shares of financial companies so that the government becomes a shareholder (swedish model). they should start accumulating these cheap shares by spending ~$1-5B. on top of that they could also infuse more money into C to guarantee their investment. this is actually a very safe money-making scheme for the goverment. as opposed to the money-wasting scheme (GM).
sh*t, just the announcement that the goverment is ready to buy C at the open market will make it trade $10.
i repeat, the government can't lose here and will actually make $$ in 1-2 years.
the only way they lose if C fails anyways. but if C fails, >50% of other banks must fail = total kaput (global depression coupled with nuclear winter and ass farking without vaseline).
sh*t, just the announcement that the goverment is ready to buy C at the open market will make it trade $10.
i repeat, the government can't lose here and will actually make $$ in 1-2 years.
the only way they lose if C fails anyways. but if C fails, >50% of other banks must fail = total kaput (global depression coupled with nuclear winter and ass farking without vaseline).
Having the gov't buy C stock on the open market does not get any fresh capital onto the books. Doing a preferred or convertible would, of course, but in circumstances like these those generally involve wiping out the current common.
because it takes money that they obviously dont have much of.
Quote from cashmoney69:
because it takes money that they obviously dont have much of.
As of Wednesday/Thursday they had plenty of capital. Not sure if Friday price action started a run (we will find out more about that within the next 24-36 hours about that).
And to be clear - what I am suggesting is taking funds that were earmarked for year end bonuses (not working capital).