Bank Nationalization Poised to Begin

reply to post by Rockpuck



True, but think about what's going on today. You have Bernanke and Obama talking about the economy. You had a G20 meeting over the weekend that was a lot of talk and not much action. So if Citigroup drops on thoughts of Nationalization, Prince will sell, then tell all his friends to sell all their stakes in US Banking (I mean if we nationalize 1, who's safe right?).

So either the US is going to get hosed by the debt Citigroup has, or they are driving down the stock to get it on the cheap.

Originally posted by Rockpuck
Marge:

The Prince holds about 4-5% of Citi Common Shares.

Yes you are right, but Abu Dhabi's investment arm paid $7.5 billion for a 4.9% stake in the company also.

So combined that is about more than 10% percent of shares.

Originally posted by jefwane

Anyway, I don't think that anyone would argue that a 40% stake is defacto nationalization.

You are looking at much bigger chunk down the road.

Investors in the nationalized bank would likely be wiped out. And nationalizing even one or two banks could create a chain reaction of falling confidence. If investors worried that other banks were on the government's takeover list, they would be even more wary of investing in the financial sector.

online.wsj.com...