Citigroup-Government Stake Deal Could Come As Soon As Today: Wall Street Journal

Citigroup-Government Stake Deal Could Come As Soon As Today: Wall Street Journal

www.huffingtonpost.com

Citigroup Inc. is closing in on an agreement to boost the federal government's stake in the company to as much as 40%, according to people familiar with the situation. A deal could be announced as soon as Thursday.

(visit the link for the full news article)

So they are saying it won't be "Nationalized" but the U.S. govt. is going to up it's stake in Citigroup! How much MORE are they going to give the company? Also what are they going to do Monday when AIG, is no longer able to run unless they have MORE money from the govt.? Yet the govt. already has it's max in, without AIG being Nationalized.

So how many MORE BILLIONS will be pumped within one week to first Citigroup then AIG?

But a greater U.S. stake will bring a slew of new complications for executives of the New York company.

Mexican law bars any institution more than 10 percent-owned by a foreign government from running a bank in that country. Some Citigroup executives are worried that an increased U.S. stake might subject the bank to pressure to relinquish some or all of its ownership of Grupo Financiero Banamex, the No. 2 bank in Mexico by assets, the Journal said.


Though Citigroup is loath to shed Banamex, seen as a crown jewel of the bank's operations, executives have concluded that the issue will probably have to be resolved through diplomatic channels between the United States and Mexico, people familiar with the matter said, according to the report.

I am sure Mexico will go along with it, due to the fact they are getting Billions from the U.S. govt for their "War on Drugs" (I hope I am allowed to say that, now).

When will the "regular" guy be bailed out?

When will all of us, wondering how we are going to put food on the table and pay our bills, get bailed out?

When will the families that are losing their homes with young children, due to the banks, get bailed out?

OH, I am sorry, what am I thinking, only the HUGE companies get bailed out..... forget everyone else!

Link to AIG thread:
www.abovetopsecret.com...

Link to thread - about banks being upset with homeowners getting help and working on getting it "watered down"
www.abovetopsecret.com...


www.huffingtonpost.com
(visit the link for the full news article)

[edit on 26-2-2009 by questioningall]

www.newsdaily.com...

from above link:

NEW YORK, Feb. 24, 2009 (Reuters) — Even if the government took a large common equity stake in Citigroup Inc, worries would likely persist about the bank's ability to absorb soaring losses in a deepening recession.


The third-largest U.S. bank by assets is in talks with federal regulators on a plan for the government to increase its stake, a person familiar with the matter said. Converting $45 billion of preferred stock, which the government obtained last fall, to common stock is one of many options, the person said.

Converting preferred shares to common equity "helps their capital ratios but it doesn't help their problem assets," said Walter Todd, portfolio manager at Greenwood Capital Associates LLC in Greenwood, South Carolina. "If Citi were out of the woods, the stock would not be at $2."

So the govt. might buy stocks of the company?

So then we will all actually own stock in the company!

www.huffingtonpost.com...

The U.S. government will exchange up to $25 billion in emergency bailout money it provided Citigroup Inc. for as much as a 36 percent equity stake in the struggling bank.

The deal announced Friday _ the third attempt at a rescue plan for Citigroup in the past five months _ is contingent on private investors also agreeing to a similar swap.

So it is not quite "nationalized", but I would say it is pretty close to it.

They announced Citigroup stock DOWN over 95% in ONE YEAR!

Did you really have to post four times in a row instead of just editing your second post with all the information and your comments? Maybe I'm just biased due to my "DimensionalDetective" syndrome, since I'm seeing your topics almost as much as his now for some odd reason, and a lot of them seem to get a ridiculous amount of flags.

The main thing we need to do is stop panicking. What's happening is happening, so no matter what happens, there is a good chance that it was planned to begin with. I'm sure just like every other giant company thus far, Citigroup will be bailed out of any financial troubles they have. I wonder how many civil protests are going on currently about these bailouts. I haven't heard a single iota about any on the news, but that isn't surprising.

[edit on 2/27/2009 by SonicInfinity]