Citigroup Nationalization: Coming Fast?

Uncle Sam may be moving quickly to save the financial giant.

By + More

Sooner rather than later. Much sooner, according to DC insider and analyst  Pete Davis:

"What's ahead?  My Washington banking sources expect a backdoor nationalization of Citigroup, possibly before 6 p.m. today, when Asian financial markets are poised to hammer Citi stock from $4 to far less 90 minutes from now.  That after Citi fell from a 52-week high of $35 in early December, 2007, to its Friday close of $4.

Nationalization of Citi would probably include the injection of billions of dollars more from the Troubled Asset Relief Program (TARP), on top of the $25 b. Citi has already received.  Citi is too big to fail.  Over half of its deposit come from foreign investors.  Thursday, Saudi Prince Alwaleed bin Talal upped his stake in Citi from 4% to 5% in an effort to stave off a bank run.  Monday, Citi announced more layoffs, bringing the total to 75,000 out of a total workforce of 375,000.  Unfortunately, this probably won't be enough."

You Might Also Like