Monday, February 23, 2009

Citibank Pulls Our Collective Leg

According to the Wall Street Journal, Citibank wants the US to convert its $40B preferred stock investment into common stock for 25-40% of the company, giving an implied valuation of $100-240B for the bank. For comparison, the current market cap is roughly $10-11B. This is preposterous--and insulting.

If we wanted to buy the damn bank, we'd just buy it. I'd like to see them turn down an acquisition offer at this point.

It's time for Citi to go through a pre-planned bankruptcy. Call it a restructuring, call it nationalization, just do it and do it now. Throw the swindlers out of a job.

No comments: