Congratulations, U.S. taxpayers, said Karen Tumulty in Time online. “You are about to become the biggest shareholder in one of the country’s premier financial institutions,” Citigroup. The Treasury Department Friday took a 36 percent stake in the bank and will get a majority of board seats.
“Here’s the deal,” said Henry Blodget in Clusterstock. “You, the taxpayer, will be converting your dividend-paying Citigroup preferred stock into non-dividend paying Citigroup common stock.” And in a further “gift” to shareholders, you’re overpaying by about 30 percent for the common stock. Half of Citi's board gets fired, but that's “just a symbolic concession.”
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