Citigroup's low share price already reflects, at least in part, a fear among shareholders that their stakes might be further diluted. A government move to take a big stake could backfire, potentially spurring investors to flee other banks, even healthier ones.
You think?
From CNBC
At this point of time, Citigroup does not know how much money it is getting from the federal government. However, if you compare Citigroup's market capitalization with the number of preferred shares the government currently owns, if these shares were converted right now,
they would worth more than 100 percent of Citi's total market capitalization.
So goes Citi. What this means for BAC is that its turn will come soon.
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