Citigroup Passes Into the Taxpayers Hands

I almost missed this one. Today, my fellow taxpayers, we all became owners of about 34% of Citigroup’s (NYSE:C) common stock.

From Reuters:

One hundred ninety-seven years, one month and 14 days after its founding, Citigroup Inc has given a roughly 34 percent stake to U.S. taxpayers.

While a few technical details still remain, the bank has completed a months-long effort to convert preferred shares held by the U.S. government into common stock.

Citigroup on Thursday completed two exchange offers to bolster the capital position of the nation’s third-biggest bank, widely considered the most troubled large U.S. lender.

Public investors, private investors and the government swapped close to $58 billion of preferred securities into common stock of the New York-based bank.

You will be pleased to know that with this transaction our bank, thanks to us, is one of the best capitalized in the world. I hop all of you will join with me in transferring your banking business to the peoples’ bank.

On second thought, maybe we shouldn’t rush into that one. It might create more peoples’ banks.

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About Tom Lindmark 401 Articles

I’m not sure that credentials mean much when it comes to writing about things but people seem to want to see them, so briefly here are mine. I have an undergraduate degree in economics from an undistinguished Midwestern university and masters in international business from an equally undistinguished Southwestern University. I spent a number of years working for large banks lending to lots of different industries. For the past few years, I’ve been engaged in real estate finance – primarily for commercial projects. Like a lot of other finance guys, I’m looking for a job at this point in time.

Given all of that, I suggest that you take what I write with the appropriate grain of salt. I try and figure out what’s behind the news but suspect that I’m often delusional. Nevertheless, I keep throwing things out there and occasionally it sticks. I do read the comments that readers leave and to the extent I can reply to them. I also reply to all emails so feel free to contact me if you want to discuss something at more length. Oh, I also have a very thick skin, so if you disagree feel free to say so.

Enjoy what I write and let me know when I’m off base – I probably won’t agree with you but don’t be shy.

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