Insolvent CitiGroup Panhandling Again
Last week Citigroup sold $6 billion of preferred shares, after it reported a $5.1 billion Q1 loss and cut 9,000 jobs.
The struggling bank already has sold off more than $30 billion of additional company stock since December.
Today, seeking to bolster capital depleted by further mounting losses...
Citigroup went back to the well and sold off another dilutive (3% of outstanding) $4.5 billion of common stock at a 4% discount to yesterday's closing price.
Oppenheimer's Meredith Whitney: "We believe Citi needs to raise an additional $10-$15 billion or
sell several hundreds of billions worth of assets in order to truly shore up its capital position."
The struggling bank already has sold off more than $30 billion of additional company stock since December.
Today, seeking to bolster capital depleted by further mounting losses...
Citigroup went back to the well and sold off another dilutive (3% of outstanding) $4.5 billion of common stock at a 4% discount to yesterday's closing price.
Oppenheimer's Meredith Whitney: "We believe Citi needs to raise an additional $10-$15 billion or
sell several hundreds of billions worth of assets in order to truly shore up its capital position."
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