A helping hand? (We're your elected officials, and we're here to help...)
By converting preferred stock to common stock, your government now owns 36% of Citibank. Like the rest of the "good news" from our stab-in-the-dark, blindfolded congress, this won't be good. Not for you the taxpayer, not for CitiGroup, not for the country, and in this case, not for the world economy.
This is the third attempt to bail out Citibank. The first two were not free, but billions (your money) of dollars are gone. Evaporated. Oops! Let's try again.
Citi's stock, already at an 18 year low at the close of business yesterday, lost another 37% on the news, falling to a low of $1.50 per common share. The "good news" is that our elected officials, instead of converting the preferred stock at a price of $5 per share, only paid $3.25 for something that's now worth $1.50.
Wow! Congress is really fixing the banking business! These people should think of running the Big Three automakers. Imagine how quickly they could run that into the ground.
Oh. And healthcare's next.
Call me if I can help you with a purchase or refi mortgage;