Sign up today for an exclusive discount along with our 30-day GUARANTEE — Love us or leave, with your money back! Click here to become a part of our growing community and learn how to stop gambling with your investments. We will teach you to BE THE HOUSE — Not the Gambler!

Click here to see some testimonials from our members!

CITI Secondary – A Busted Deal?

Courtesy of Bruce Krasting

I wrote yesterday about my distrust of the Citibank “Exit TARP” plan. My worst fears have been realized. At the last minute The US Treasury pulled their part of the deal. Treasury was going to sell up to $5 billion of Citi common this afternoon. And now they are not. The taxpayers are going to be stuck with the shares for a long time. The plan to sell these and another $25b next year is simply not going to happen.

It will be interesting to see the headlines from the company and Treasury on this on. What are they going to say? Excuses like, “Market Conditions”, Abu Dhabi did not buy”, are not going to fly. The stock may pop tomorrow morning from the cut back in the amount of shares sold. But there is not much upside given that there is a mountain of shares ($30b) that are on the shelf and have a 4-Sale sign on them.

This just out from Bloomberg. They did not like the price??? Busted.

Dec. 16 (Bloomberg) — The U.S. Treasury Department is delaying sales of its Citigroup Inc. common stock because of the low price in the bank’s secondary offering, a person familiar with the matter said.


Do you know someone who would benefit from this information? We can send your friend a strictly confidential, one-time email telling them about this information. Your privacy and your friend's privacy is your business... no spam! Click here and tell a friend!





You must be logged in to make a comment.
You can sign up for a membership or get a FREE Daily News membership or log in

Sign up today for an exclusive discount along with our 30-day GUARANTEE — Love us or leave, with your money back! Click here to become a part of our growing community and learn how to stop gambling with your investments. We will teach you to BE THE HOUSE — Not the Gambler!

Click here to see some testimonials from our members!