Bailout-Babel Fish: Vikram Pandit Edition: How 83% Dilution Is "Good For You"
Original version in Pandit-speak:
Today, we announced a series of transactions to repay the $20
billion of TARP outstanding and terminate the asset guarantee we
received from the U.S. government. The Treasury also announced its
intention to sell its ownership in Citi stock in the coming months.
These actions bring us closer to ending a very difficult period for our
company, and we owe the U.S. taxpayers and the government a debt of
gratitude for their extraordinary assistance.
That we are here is a testament to your hard work and
accomplishments in getting our house in order. Today we are strongly
capitalized, efficient, focused on our clients with a clear strategy
for the future. With your commitment and dedication, we have created a
strong foundation for the future.
Our goals near term are clear: to achieve sustained profitability
and to promote economic recovery by lending, keeping people in their
homes, and helping clients with their needs. There are still economic
challenges ahead that require your continued focus on clients and
Over the past few months, I have visited many of you in the U.S. and
around the world. I am continually impressed by the depth and breadth
of talent we have at Citi. I am also very touched by your efforts to
help customers and families in need and the communities of which we are
Thank you for all you do every day for our clients, customers,
communities and Citi. I am very proud of your accomplishments.
Bailout-Babel Fish translation, courtesy of Portales Partners (via FTAlphaville)
Citigroup: “Today we announced a series of transactions to repay the
$20B of TARP outstanding and terminate the asset guarantee we received
from the U.S. Government.”
Translation: I am sick of working for $1 per year.
Citigroup: “Today we are strongly capitalized….”
Translation: We have diluted the shareholders by a factor of six.
Translation: We have cut the company in half.
Citigroup: “…and created a strong foundation for the future.”
Translation: We are working on a strategy.
Citigroup: “There are still economic challenges ahead…”
Translation: Forget about any kind of bonus.
Citigroup: “Over the past few months, I have visited many of you in the U.S. and around the world…”
Translation: I am trying to avoid the home office.
Citigroup: “Thank you for all you do every day for our clients, customers, communities, and Citi.”
Translation: Common shareholder? Hello? Dilution of 83% is the inverse of a factor of six.
So much easier to understand.