Citigroup’s Latest Bailout Gives the US More Control

The US government agreed to boost its stake in Citigroup to as much as 36%, shoring up the bank’s capital and taking on far more control of the ailing banking giant.

To view dictionary popup window put your cursor on the blue scripture words.

“…upon the earth distress of nations, with perplexityStrongs 640: aporia, ap-or-ee´-a; from the same as 639; a (state of) quandary:—perplexity.
Strongs 639: aporeo, ap-or-eh´-o; from a compound of 1 (as a negative particle) and the base of 4198; to have no way out, i.e. be at a loss (mentally):— (stand in) doubt, be perplexed
—Luke 21:25

Root of All Evil

“For the love of money is the root Strongs 4491: rhiza, hrid´-zah; apparently a primary word; a “root” (literally or figuratively):—root of all.of all evilStrongs 2556: kakos, kak-os´; apparently a primary word; worthless (intrinsically, such; whereas 4190 properly refers to effects), i.e. (subjectively) depraved, or (objectively) injurious:—bad, evil, harm, ill, noisome, wicked. …..”
—1 Timothy 6:10a

The government will convert up to $25 billion in preferred shares to common stock in its third attempt to prop up Citigroup in the past five months.

Existing shareholders will see their ownership of the bank fall as low as 26 percent. The government stake is now close to 8 percent.

While the latest rescue does not inject more money into Citigroup, it gives the government more of a voting stake and far greater influence over the bank’s operations, short of outright nationalization.

Shares of Citigroup [C 1.50 -0.96 (-39.02%) ] fell to a new 18-year low on Friday.

“The government is the new boss,” said Mike Holland, the founder of money manager Holland & Co in New York. “Every major decision is something that is not going to come out of Park Avenue, but is going to come from Washington, D.C.”

  1. Ernest Gregoire, 28 February, 2009

    Murphy’s golden rule says, “The man with the gold, makes the rules!”

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