Citi Bank of America?
I know the title is a little confusing sounding like multiple banks while I’m simple just trying to point out the nationalization of Citi Bank (actually citi corp, stock symbol C) but I like the way it sounds. I absolutely hate what it will do, but I like the way it sounds. Today our US government converted prefered stock into common stock – 36% ownership in C stock. This diluted the ownership of the common stock holders by approximately 74%.
As if this didn’t hose shareholders bad enough Citi Group has halted dividends payout so now any hope of getting any cash out of your investments is gone. Certainly some of you talented traders may be able to get some great bounces off the bottom as the government keeps infusing cash into their nationalized bank pet project and really hope you get rich off of it.
For me, I was fooled once into thinking the government wouldn’t let Fannie Mae fall and it won’t happen again. My government play is still Ford as I don’t think all the car companies can be allowed to fall, as as the other two do collapse Ford’s market share will increase to the point it will be solvent again.
Since the market can’t collapse these large corrupt banks anymore the people will have to speak by moving their savings to their responsible local banks and credit unions. I know I’m going to.
Related posts:
- How to Decide the Best Banks for You
- Common Stock Vs Preferred Stock
- First Insurance Suggestion – AIG
- How To Value A Stock
- Banking on Personal Finance