Citi Passes Into The Taxpayers Hands

I almost missed this one. Today, my fellow taxpayers, we all became owners of about 34% of Citi’s common stock.

From Reuters:

One hundred ninety-seven years, one month and 14 days after its founding, Citigroup Inc has given a roughly 34 percent stake to U.S. taxpayers.

While a few technical details still remain, the bank has completed a months-long effort to convert preferred shares held by the U.S. government into common stock.

Citigroup on Thursday completed two exchange offers to bolster the capital position of the nation’s third-biggest bank, widely considered the most troubled large U.S. lender.

Public investors, private investors and the government swapped close to $58 billion of preferred securities into common stock of the New York-based bank.

You will be pleased to know that with this transaction our bank, thanks to us, is one of the best capitalized in the world. I hop all of you will join with me in transferring your banking business to the peoples’ bank.

On second thought, maybe we shouldn’t rush into that one. It might create more peoples’ banks.

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