It’s more like taxpayers to the rescue, but it sounds like the government will try to convert $25 billion of preferred shares [1] into common stock [2] in exchange for a 36% ownership of Citigroup. This is much less than the 90% stake that other people were talking about but still, doesn’t this basically mean nationalization since the next biggest shareholder probably owns less than 10%?
I mean, I can pretty much bully my way into getting everything I wanted to pass the votes if I am the biggest shareholder of any company right?
Oh well, looks like Citigroup’s stock is down big (for those that even thinks it matters anymore). Stay away from the banks [3] unless you are a trader and want to gamble.
Other Interesting Finance Articles
- I found a short two-part series that gives a simple explanation of the credit crisis [4]. Go take a look to learn a little about how and why we got into this mess.
- Oblivious Investor tells us how to achieve worry free investing [5]. Interested? I know I am.
- Four Pillars have a great post on why you need to be a good landlord [6]. A great read for me because I’m thinking of eventually becoming one.
- ABCs of Investing talks a little about taxable and non-taxable accounts [7].