Citigroup's Clever Plan to Screw Taxpayers Again

[jordi_fanclub]

Source: The Business Insider via Yahoo!Finance

So Citigroup (C) has proposed that the US taxpayer and other preferred shareholders convert up to $75 billion of preferred stock into common stock, thus bolstering the company's tangible equity and putting it in less desperate need of a complete takeover.

And what will the US taxpayer get for this preferred stock conversion? 40% of the company for some of its $45 billion of preferred, say reports. The reports add that Citigroup's goal here is to keep the US's ownership under 50%, so this won't be a de facto nationalization.

Well, that's nice for Citigroup...and another ream-job for taxpayers.

Citigroup's common equity is currently worth $10 billion. If the US were to convert all $45 billion of its preferred at the current stock price, it should end up with 80% of the company, not 40%.

Read more: http://finance.yahoo.com/tech-ticker/article/191028/Citigroup's-Clever-Plan-to-Screw-Taxpayers-Again

[sarcasmo]

1. Corporate theft, people need to start going to Prison.

[olddad56]

4. amen, if you or I stole $100 we would be charged with a crime.

[sarcasmo]

8. Exactly, you add seven or eight zeros to that number it should be a max sentence.

[kentuck]

2. They are a zombie bank, just as Krugman says...

They are fixing the numbers to make it look like a 40% bailout, when in fact, it is an 80% or better bailout. It is a scam and a deception.

[radfringe]

3. flash from the past

As was repeatedly told DUers beginning in 2006, CitiStreet - the 50/50 JV that Citi and State Street set up to "service" pensions - is on the radar of key Dems on Capitol Hill, due to the efforts of certain whistleblowers.
( http://www.google.com/search?hl=en&safe=off&q=+site:www.democraticunderground.com+citistreet+corpgovactivist )

This is going to get ugly, as pension plans come forward with tales of how Citi and STT engaged in eye-popping transactions with their funds.

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[Hawkeye-X]

5. Fuck 'em. They're insolvent, and therefore needs to be in Chapter 7 bankrupty

and let them learn an hard lesson. Send the CEO and the Citi executives into prison for 50+ years for fraud and theft.

Hawkeye-X

[burythehatchet]

6. Our President is allowing this to happen. But give him some time.

[Romulox]

7. So far, Wall Street and the banks have gotten every penny they've asked for.

Citibank will get this, too. Mark my words. :hi: