When financial stocks slumped in February to the lowest level in at least 17 years, U.S. Federal Reserve Chairman Ben S. Bernanke told Congress the government might end up owning “substantial” stakes in the country’s biggest banks.
Three months later, New York-based Citigroup Inc. may be the only large bank that has to accept his offer.
Bank of America Corp., Wells Fargo & Co. and seven other firms judged to need extra capital by the Fed’s “stress tests” plan to raise the required $69.1 billion through a combination of share offerings, asset sales, private securities exchanges and earnings. They will do anything to escape the government meddling that probably awaits Citigroup, said Philip Orlando, who helps manage $410 billion as the New York-based chief equity strategist of Federated Investors Inc.
(ARTICLE CONTINUES BELOW)
“You never want to have the government involved in your business,” said Orlando, whose firm owns 7.3 million JPMorgan Chase & Co. shares and 1,483 shares of Citigroup. “They’re not businessmen; they’re bureaucrats. They don’t understand capitalism, they don’t understand the profit motive and they don’t understand the financial industry.”
Citigroup Chief Executive Officer Vikram Pandit’s plan to convert $25 billion of government-held preferred shares into a 34 percent voting stake contrasts with the negotiations that New York-based JPMorgan and Goldman Sachs Group Inc. are conducting to redeem preferred shares they sold in October to the U.S. through the Troubled Asset Relief Program.
June 1st, 2009 at 10:19 am
Its the END OF THE WORLD!!!!!
http://pencildicksvstheworld.b.....uture.html
June 1st, 2009 at 10:24 am
It may not be the end of the world but it’s looking like the end of CitiGroup.
June 1st, 2009 at 11:26 am
http://www.billstclair.com/liberty.html
June 1st, 2009 at 11:52 am
Jesse’s giving Obama a year… hell, in office 100 days…and he’s already destroyed our economy, how much time do you need?
The Fed is going to end up owning everything, and then give it to the IMF and the new World Bank… it’s all by design.
June 1st, 2009 at 1:37 pm
Does that mean Citigroup employees will now be government employees?
What a burden on the taxpayer. Why don’t they just let it fail? Creditors will sort out the mess, other banks will hire their most of their employees to fill the power vacuum, and it will be done!
Instead we have to prolong this crap.
“Change We Need” = Prolong the agony so cronies can get their bonuses
dude Reply:
June 1st, 2009 at 5:23 pm
Yep and so are many more like GM,ya know Government motors
June 1st, 2009 at 2:12 pm
So now that the government will be major shareholders in automakers and banks, does that mean that tax payers will start to get dividend checks in the mail every quarter?
Didn’t think so.
I guess the government does not work for the people after all. What a shock…
Don’t fight the system:
Replace it
http://socialviability.com/
June 1st, 2009 at 2:50 pm
*HERE: Stream and Download ALL the best interviews and rants from the Alex Jones Show Archives:
http://alex-jones-archives.politicsfiles.info/
Backup your favorite episodes, don’t miss any!
June 1st, 2009 at 5:24 pm
I tried watching one but had to vomit when i first layed eyes on it.
June 1st, 2009 at 6:12 pm
Check this out !!!
Dramatic escape for a 17-year-old Indonesian model !
Safe escaping for this 17 yo model from Indonesia .
The Kelantanese royal family held her against her will , MANOHARA WAS ABUSED; INJECTED; SEXUALLY HARASSED BY KELANTAN ROYALTY
http://atomicnewsreview.org/20.....ian-model/
June 1st, 2009 at 6:52 pm
Really we are screwed China dont have to go to war with us just Forclose and they own us lol