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Citigroup, Once World's Biggest Bank, Sees Stock Drop Below $1

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  • Citigroup, Once World's Biggest Bank, Sees Stock Drop Below $1

    http://www.bloomberg.com/apps/news?p...d=aKLJO8S5nFaU

    Citigroup, Once World’s Biggest Bank, Sees Stock Drop Below $1
    By Christine Harper

    March 5 (Bloomberg) -- Citigroup Inc. dropped below $1 in New York trading for the first time, the latest sign that stock investors are losing confidence in a company that was once the world’s biggest bank by market value.

    The stock fell to 99 cents at 11:22 a.m. on the New York Stock Exchange, marking an 85 percent decline this year and giving the company a market value of $5.5 billion. At its peak in late 2006, Citigroup stock was worth $55.70, giving the company a market value of $277.2 billion.

    Citigroup has reported more than $37.5 billion in net losses during the last five quarters and the U.S. government has provided the company with $45 billion. Last week, the government agreed to convert the preferred stock it owned in Citigroup to common shares, gaining a 36 percent stake in the company and boosting its buffer against future losses.

    NYSE Euronext, which owns the New York Stock Exchange, has suspended until June 30 a rule that delisted companies trading below $1 after six months. The change was made to help prevent a wave of delistings after the Standard & Poor’s 500 Index fell to a 12-year low.

    Citigroup was created by the 1998 combination of Citicorp and Travelers Group Inc., which with a value of $85 billion was the largest merger in history at the time. The transaction helped persuade the U.S. government to repeal a Great Depression-era law, the Glass-Steagall Act, that prohibited banks that took consumer deposits from engaging in investment-banking activities.

  • #2
    It is like a nightmare (sad lol) I could give a rip if they go under or not personly. Those rats raised my interest about 4 years ago for no reason..Never been late or nothing. I am so glad that stuffs is behind me. Credit cards? Straight from H;ll if you ask me.
    Last edited by pathfinder3081; 03-05-2009, 01:50 PM. Reason: text
    "And with a collection of minds and talent, they survived"

    Comment


    • #3
      This is just another sign of the times, imo.

      I hope that everyone is preparing as quickly and proficiently as possible for what is heading toward us.

      Banks ARE failing and the FDIC practically stated they are insolvent..

      There are so many companies folding up or cutting back to the point of producing very little..

      Layoffs and pay cuts are SOP today with no slow down in either in sight..

      Food prices are STILL rising, even though this was blamed on higher gas prices a few months ago..

      Gas prices are again creeping upwards, even though oil is lower...

      Foreclosures, empty community food pantries, increased crime, spousal abuse, substance use...all on the rise..

      And then we have our government up there spending money that does not exist anywhere except in someone's overactive imagination.

      We are in SO much trouble. I DREAD summer getting here with the heat and shorter tempers.

      Prepare, prepare, prepare!! Of course, I am preaching to the choir here. :D

      Comment


      • #4
        Sorry if anybody here has a soft spot for Citi, but it couldn't happen to a nicer group.

        They raised my rates from 1.9% to 30% because they felt I was a risk, however, what caused me to not be able to pay, was them raising my rate!
        That is just stupid and bad business if you ask me. They miscalculated badly. I believe they were just trying to get more money out of me by changing the deal after the fact. But I couldn't pay, and futhermore, since they crawfished on the deal, I'm not sure i wanted to even if I could.

        My investments were making money but not liquid so I couldn't pull it out and pay them off. So they forced me to default because they thought I might default. Then accused me of fraud!! I say it is a self fulfilling prophecy.

        So they never got their money, sued me, I filed ch7, they got nothing. No wonder they are going down, they have terrible business practices.

        that is my rant, I feel much better now.
        My weapon can kill, it isn't limited to mere assault

        Comment


        • #5
          Originally posted by Lostinoz View Post
          http://www.bloomberg.com/apps/news?p...d=aKLJO8S5nFaU

          Citigroup, Once World’s Biggest Bank, Sees Stock Drop Below $1
          By Christine Harper

          March 5 (Bloomberg) -- Citigroup Inc. dropped below $1 in New York trading for the first time, the latest sign that stock investors are losing confidence in a company that was once the world’s biggest bank by market value.

          The stock fell to 99 cents at 11:22 a.m. on the New York Stock Exchange, marking an 85 percent decline this year and giving the company a market value of $5.5 billion. At its peak in late 2006, Citigroup stock was worth $55.70, giving the company a market value of $277.2 billion.

          Citigroup has reported more than $37.5 billion in net losses during the last five quarters and the U.S. government has provided the company with $45 billion. Last week, the government agreed to convert the preferred stock it owned in Citigroup to common shares, gaining a 36 percent stake in the company and boosting its buffer against future losses.

          NYSE Euronext, which owns the New York Stock Exchange, has suspended until June 30 a rule that delisted companies trading below $1 after six months. The change was made to help prevent a wave of delistings after the Standard & Poor’s 500 Index fell to a 12-year low.

          Citigroup was created by the 1998 combination of Citicorp and Travelers Group Inc., which with a value of $85 billion was the largest merger in history at the time. The transaction helped persuade the U.S. government to repeal a Great Depression-era law, the Glass-Steagall Act, that prohibited banks that took consumer deposits from engaging in investment-banking activities.
          So, wait...the company LOST $37.5B, their current company VALUE is $5.5B, and the government has given them $45B?!

          Talk about feeding a dead horse. The government gave them 8 times the current value of their company, and they're still in decline...I'm so glad I paid those taxes...they went to a very wealthy individual.
          "Reject the basic assumptions of civilization, especially the importance of material possessions." "The things you own end up owning you"-Tyler Durden

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          • #6
            Wow.. Visinedrop , I read it today when Lostinoz posted it and I was talking about it at my work. I didnt do the math. Crazy feds, talking about Pi;;ng up a robe. 37Billion just vanished. Like it was nothing. Lotinoz your words are so true. I thought the fall season would bring it, but if the market keeps slipping? Who knows?
            Hopefully nothing, but my doubts are getting stronger. PF
            "And with a collection of minds and talent, they survived"

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            • #7
              Originally posted by cwconnertx View Post
              ...since they crawfished on the deal,...
              Hey Conner,

              I'd never heard that expression before, that's good! Pinch the money, then back out, just like a crawfish. Great analogy, man!
              If it looks ignernt, but it works, then it ain't ignernt.

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