Citigroup Moves Closer to Nationalization

Citigroup is in talks with U.S. officials for the government to take more of a stake in the troubled financial giant. The Wall Street Journal reports, "While the discussions could fall apart, the government could wind up holding as much as 40% of Citigroup's common stock. Bank executives hope the stake will be closer to 25%," according to sources. Also: "Any such move would give federal officials far greater influence over one of the world's largest financial institutions." But some analysts think that the government might need to do more to really stabilize Citi. And while overseas stocks rallied over that bit of news, the U.S. stock markets's bank rally was cut short with news about tech sector weakness. Who knows what will happen this week, as President Obama discusses tax cuts and cutting the deficit.

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By Jen Chung in News on February 23, 2009 10:48 AM

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sidenote

The Wall Street Journal reports, "While the discussions could fall apart, the government could wind up holding as much as 40% of Citigroup's common stock. Bank executives however hope the government will be cool, have a good laugh over the whole situation and remark, 'Bankers! Can't live with 'em, can't live without 'em! Am I right folks?'"

Felix Hoenikker

It should be preferred stock.

fugothamist

what will they name Citi Field?

how bout Federal Field, has a nice ring to it

S.D.

Might work...

Me, I think they should name it after a New Yorker, like Cpl. Jason Dunham (upstate) or Lt. Michael P. Murphy (Smithtown, Long Island), but that's just me.