Custom Search
Deika Morrison

Deika Morrison: Reasoning the Reasons

Grab this Headline Animator

Deika Morrison: Financial Security Tips+Tools

Grab this Headline Animator

Friday, February 27, 2009

Government Increases Stake In Citigroup to 36%. Share Price Tanks

CitigroupImage by LoopZilla via Flickr

Read 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.

Reblog this post [with Zemanta]

1 comment:

Anonymous said...

Obama cannot move beyond what is politicaly permissible. The issue is not what is right but what you can accomplish. Britain mobilised its entire adult population in the Second World War, but Germany did not do this with women for idelogical reasons. Is a life, as Bob Marley would say.

Creative Commons License
Reasoning The Reasons by Deika Morrison is licensed under a Creative Commons Attribution-No Derivative Works 3.0 United States License.