NEW YORK – Investors showed relief early Monday following a report that Citigroup Inc . is in talks for the U.S. government to boost its stake in the bank.
Stocks tumbled last week as investors worried that the government would be forced to funnel more money to Citigroup and Bank of America Corp . and, in the process, completely wipe out shareholders. The Wall Street Journal reported late Sunday that Citi is negotiating to increase the U.S. government's stake to as much as 40 percent. The government, which has already invested $25 billion in the company, would convert its preferred shares to common shares; this would leave existing shareholders with some stake, albeit one that is diluted, the Journal reported.
Full Story: US stocks point higher on report of Citi report (AP)
Stocks tumbled last week as investors worried that the government would be forced to funnel more money to Citigroup and Bank of America Corp . and, in the process, completely wipe out shareholders. The Wall Street Journal reported late Sunday that Citi is negotiating to increase the U.S. government's stake to as much as 40 percent. The government, which has already invested $25 billion in the company, would convert its preferred shares to common shares; this would leave existing shareholders with some stake, albeit one that is diluted, the Journal reported.
Full Story: US stocks point higher on report of Citi report (AP)
Leave a comment