Citi Price Rumored At $3.15, $20.5 Billion In New Securities, Government To Keep $5 Billion In Common Stake As Below Cost-Basis

Tyler Durden's picture

Congratulations Citi: your ability to pay massive bonuses by rushing out of TARP just cost US Taxpayers their cost basis in your garbage stock (not like there was any doubt). Look for a firestorm of critism tomorrow as the populist anger at Vikram et al is rekindled, this time for cause.

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
etrader's picture

Mr Paulson

:-)

Green Sharts's picture

Citi common stock closed at $1.50 on the day Treasury (Geithner) agreed to exchange $25 billion of taxpayer money invested only a few months earlier in Citi preferred stock to common.  But Geithner wanted to hold down the government's percentage ownership of Citi to 36%, so the conversion price was $3.25, more than twice the market price. 

http://www.marketwatch.com/story/government-boost-stake-citigroup-36-shares

 

Anonymous's picture

Cost basis?? Does anyone even know the true cost basis after tax concessions? Why is Citi still even a business? They should have filed, and divisions sold off by now. No wonder the economy won't move with these balls and chains.

Rainman's picture

We has a bankrupt government bartering with a bankrupt bank over borrowed billions from China.

The abnormal is now normal.

xamax's picture

well said Rainmain !

that's the sad but new reality, until everything blows up !

jmc8888's picture

Less than the gov't.  Ha ha. 

 

Or I guess that's doh (bailout at too high of price)

 

At least there's some egg on their faces.

Brett in Manhattan's picture

I wonder how much of the money Citibank used to pay back TARP was in the form of interest received from the Treasuries they bought with the money they got from the Fed in exchange for toxic MBSs.

Anonymous's picture

Sugar & Cocoa prices soar to all time highs!! Joe thanks Ben for his morning cup of Joe !! Pays a bucket for it soon.. Great TIME(s)

E pluribus unum's picture

Maybe Sheila Bair will shut them down this friday and put them out of their misery

Bam_Man's picture

This is what Marv Albert refers to as "mammoth garbahhhge time".

The game was decided long ago, the players are now scrubs and the action is extremely amateurish.

GoldmanSux's picture

Another idiotic decision by Citibank. There is only one reason this had to be done by year end. Rubin Inc. is batting 1000

Anonymous's picture

Citibank first to go boom next.

Then BOA constrictor. BAC. Bank of Armenia Corp.

Redsky dedsky.

JP Morgan. The One bank to rule them all.

We Rockefellors. We run this town.

Like Ice on cake a fat kid loves me.

I'm a rap catastrophe, no getting past me

Like a bad date I'm your fate so don't play homey

blow me

-MobBarley

perpetual-runner-up's picture

can someone smarter than me figure out how much back door bailing out was done via the 2-3 trillion the fed has given out but will not disclose reciepients?

What has been generated on interest in that - worst case...

I wonder how that jives with the repayments we are seeing?

Anonymous's picture

Bove on CNBC earlier. Talking about all of the advice that he gave during his "meetings" with Citi a couple of weeks ago. I'm sure no non-public info was exchanged during those meetings.

Phooter's picture

Bove on CNBC earlier. Spent a lot of time talking about all of his "meetings" with Citi's management a couple of weeks ago. I'm sure everything discussed at those meetings was above board and publicly disclosed to the rest of us.  

Anonymous's picture

1) Kuwait sells a boatload at (nevermind)
2) Kuwait is on the hook to buy a boatload at (nevermind)
3) The anticipated price in this fine article

C'mon sheeple, let's help the SEC with timelines and connect the dots.