Treasury Halts Plan to Sell Off Citi Stock

Wall Street Journal ^ | December 17, 2009 | By DAVID ENRICH

[Oldeconomybuyer]

The U.S. government abruptly shelved plans to start trimming its 34% stake in Citigroup Inc., after investors demanded a price so low that the Treasury Department would have lost money on the deal.

The embarrassing reversal came two days after the Treasury said it planned to sell as much as $5 billion of stock in the New York company, as part of Citigroup's plan to pay back $20 billion in taxpayer aid the troubled bank received last year.

[FromLori]

Related

Citigroup Does The Impossible: It Screws US Taxpayers AGAIN

http://www.businessinsider.com/henry-blodget-citigroup-does-the-impossible-it-screws-us-taxpayers-again-2009-12

http://www.freerepublic.com/focus/news/2409579/posts?page=10

[Sacajaweau]

The treasury already lost the millions...why do they try to infer that this was a money making deal???

[earlJam]

And GM renegs last minute on its deal to sell Saab.

So tell me again, why shouldn’t government be in business?

[TheZMan]

That free market’s a bitch, aint it bambi.

[equalitybeforethelaw]

Oooops - seems like the bammites are unable to do two things at once. Wonder how gibbs the gerbil will handle this one? Should make for fun watching. CITIBANK, bill clintons margin account, more Dems will be falling on swords.

[FromLori]

Treasury total and complete liars now whether one likes Taiibi or not he details it in this report about obama

http://www.rollingstone.com/politics/story/31234647/obamas_big_sellout/print

and

U.S. gave up billions in tax money in deal for Citigroup’s bailout repayment

http://www.washingtonpost.com/wp-dyn/content/article/2009/12/15/AR2009121504534.html?hpid=topnews

[FromLori]

ping not my post but worth reading!

[Oldpuppymax]

Oh please. Since when is Big Brother concerned about losing taxpayer money! I wonder what the REAL story is?

[FromLori]

Meanwhile, as U.S. policymaker tout the newfound “health” of the post-TARP banking system and investors hope future profitability will make the current dilution worthwhile, Whalen notes some very savvy foreign investors are heading in the other direction.

The Kuwait Investment Authority recently sold its $3 billion stake in Citigroup and The FT reports is considering changing its business relationship with the bank, including transferring its funds on deposit at Citi. Meanwhile, The Abu Dhabi Investment Authority is trying to abort an agreement to buy $7.5 billion of Citigroup stock, claiming the bank misled it about the investment.

http://finance.yahoo.com/tech-ticker/american-kabuki-u.s.-lets-big-banks-repay-tarp-for-all-the-wrong-reasons-393780.html;_ylt=A0wNc9HJPypLhtsADGVk7ot4;_ylu=X3oDMTB2ODQ3NWhqBHBvcwMxMwRzZWMDYXJ0aWNsZUxpc3QEc2xrA21vcmU-?tickers=C,BAC,WFC,XLF,JPM,GS,MS

http://finance.yahoo.com/tech-ticker;_ylt=Am0xweO8wlIC0BY_0VQb8stl7ot4;_ylu=X3oDMTEwbDNvam4wBHBvcwMzMgRzZWMDdG9wTmF2BHNsawN0ZWNodGlja2Vy

[FromLori]

Citi Underwriters Step In To Prevent Stock From Falling Below $3
Joe Weisenthal|Dec. 17, 2009, 9:12 AM | 962 |9
The offering went even worse than we thought. Read »

Citi Underwriters Step In To Prevent Stock From Falling Below $3

Interesting footnote to the disastrous Citi offering (which Bob Pisani reminds us is the biggest equity offering in US history, so that’s awesome!): the underwriters had to step in and snap up shares to prevent the stock from going below $3.

CNBC’s David Faber reported the news just now, and it may continue to spook the markets.

If the stock does fall below $3 — and it certainly may, perhaps even today — it will signal that the decision to let Citi repay TARP was either woefully early or woefully late

http://www.businessinsider.com/citi-underwriters-step-in-to-prevent-stock-from-falling-below-3-2009-12

[longtermmemmory]

will citi be here in 12 months?

will citi be teh albatros around Obama WH’s neck?

[FromLori]

Citigroup: Watch The Insiders

http://blog.atimes.net/?p=1281

http://www.businessinsider.com/citigroup-watch-the-insiders-2009-12

CITI OFF 8%

http://www.businessinsider.com/citi-off-8-2009-12

[FromLori]

It will probably be here ONLY because the taxpayers own large portions of it and they will continue to suck the life blood out of us with it.

[FromLori]

So Much For The Taxpayer Profit In Citi: Treasury Shares To Be Offloaded Over 12 Months After Investors Balk At Overpriced Toxic Holdings

http://www.zerohedge.com/article/so-much-taxpayer-profit-citi-treasury-shares-be-offloaded-over-12-months-after-investors-bal

[FromLori]

And here is proof that Citigroup has proudly desceneded into total worthlessness (from a Citi December 11 report). When even S&P is ahead of the curve, it is time to call it a career:

http://www.scribd.com/doc/24055944/Greek-Banks-Home-Work

http://www.zerohedge.com/article/greece-default-risk-surges

[FromLori]

How To Lose 14% In Less Than Three Days?

http://www.zerohedge.com/article/how-lose-14-less-three-days

[FromLori]

More on citi here

http://www.freerepublic.com/focus/f-news/2409597/posts

[FromLori]

An Epic Failure For Citi’s Capital Markets Team

http://www.businessinsider.com/an-epic-failure-for-citis-capital-markets-team-2009-12

[FromLori]

Citigroup’s Latest Secret Tax Bailout Is An “Outrage” And “Farce,” Kucinich Vows To Investigate

http://www.businessinsider.com/henry-blodget-citigroups-latest-secret-tax-bailout-is-an-outrage-and-farce-yells-kucinich-who-vows-to-investigate-2009-12