Citi's stock may be up on bailout news, but it's still trading at a "panic level", says Felix Salmon over at Market Movers.
What does the rescue mean for shareholders? Almost nothing, he says:
"Yes, they get to keep the full interest and upside on the $306 billion of assets which are being guaranteed by the government. But all the capital injections have come in the form of preferred shares with an 8% coupon--shares which might look like equity from a regulator's point of view, but which look very much like extra debt from a shareholder's point of view."
P.S. Don't get excited about the stock's spectacular rise in percentage today. As of early this afternoon, it was up more than 50 percent, but shares are still trading at just $5.70.
P.P.S. Here's how the bailout could turn into a raw deal for taxpayers.