Image by LoopZilla via FlickrRead the Article at HuffingtonPost
Citigroup shares tanked today. Closed at $1.50. Fell 39.02% today. Still falling in after hours trading.
I wish I could be shocked!
What was the Government really expecting?
Of course, Citi shareholders were not going to like this. And of course, because the banking system is so interconnected, other shareholders in other banks wonder if they are next. This is not like the US Government to be a shareholder in banks; other countries yes, but not the US. The market is not used to it, doesn't understand it and doesn't like it.
Saw this?: "But analysts said the loss to regular shareholders from the government's move touched off worries that other banks could see their shares hit as well."
And saw this?:
"Citi has been a leading indicator the whole way down and the dilution that shareholders took today is sort of a leading indicator of what could happen to other banks, particularly the weak ones," said Kevin Shacknofsky, co-portfolio manager of the Alpine Dynamic Dividend Fund in Purchase, N.Y.
When will this agony be over? The Government needs to just get in and get out. Half way is making it worse.