Citigroup Inc. - C

[jav992]

Citigroup considering selling itself: WSJ

By John Letzing
Last update: 8:20 p.m. EST Nov. 20, 2008
SAN FRANCISCO (MarketWatch) -- Citigroup Inc. is considering auctioning off parts of the firm or selling the company outright, according to a media report late Thursday. The online edition of The Wall Street Journal, citing unnamed sources, reported that Citigroup (CCitigroup, Inc executives are in preliminary stages of discussing a possible sale. The report said that the company's management is still insisting that it has ample capital and a sound strategic direction, though its shares fell a further 26% Thursday.

[Technical_Indicator]

C Citigroup, Inc The Wall Street Journal reported that Citigroup's board of directors is scheduled to meet today to discuss ways to reverse the stock's slide, including the possibility of selling pieces of the company or even an outright sale, the report said, citing people familiar with the situation. 3.81 -0.90 / -19.13%

[jav992]

AP
Sources: government working Citigroup rescue plan
Sunday November 23, 6:01 pm ET
By Jeannine Aversa, AP Economics Writer
Sources: gov't weighs rescue of Citigroup as stock suffers over financial health worries

WASHINGTON (AP) -- The government is weighing a plan to rescue Citigroup Inc., whose stock has been hammered on worries about its financial health.
The Treasury Department and the Federal Reserve have been in discussions over the weekend to devise a strategy to stabilize the company, according to people familiar with the talks. They spoke on condition of anonymity because the discussions were ongoing.

What investors are worried about is that all the risky debt sitting on Citigroup's balance sheet will eventually turn into losses as the economy worsens and the markets stay turbulent -- losses that could be nearly impossible to reverse.

A spokesman for New York-based Citigroup declined comment.

[jav992]

U.S. agrees to bail out Citigroup: WSJ

By MarketWatch
Last update: 12:07 a.m. EST Nov. 24, 2008SAN FRANCISCO (MarketWatch) -- Citigroup Inc. and the U.S. government reached an agreement Sunday night to rescue the beleaguered financial giant with a plan that could lead to government guarantees of as much as $300 billion of Citi's troubled assets, according to a media report.
The plan also involves a $20 billion capital injection with an 8% interest rate, The Wall Street Journal reported in it online edition, citing unnamed people familiar with the weekend negotiations.
Earlier in the night, the Journal reported taxpayers could be on the hook if Citigroup's massive portfolios of mortgage, credit cards, commercial real-estate and big corporate loans continue to sour. Citi, which has been hammered by mortgage-related losses, saw its market capitalization drop more than 60% in the past week.
The reports of discussions with the Treasury Department and Federal Reserve came as other reports had Citi's board of directors meeting to consider a wide range of alternatives for the battered financial giant, including selling parts or all of the company and replacing key executives.
An agreement would mark a new phase in government efforts to stabilize U.S. banks and securities firms, the Journal reported.
After injecting nearly $300 billion of capital into financial institutions, federal officials now appear to be willing to absorb bad assets, on a targeted basis, from specific institutions, according to the Journal's report.
The Journal said the Sunday talks centered on the creation of what is sometimes called a "bad bank," an outside entity designed to hold some of a financial firm's worst assets, in Citi's case, up to $50 billion in such assets.
Under the terms being discussed with top Treasury Department and Federal Reserve officials, Citigroup would agree to absorb losses on assets covered by the agreement up to a certain threshold, the Journal reported, citing unnamed people familiar with the matter.
The U.S. government would then absorb any additional losses, the Journal said.
It was unclear if the government would take an equity stake in Citigroup in return for the support and if Citigroup would get a government loan to finance the facility, the Journal said. The government took that approach with American International Group Inc. (AIG) in September.
It wasn't clear if Citigroup will be required to make changes ion its executive ranks, board f directors or elsewhere inside the company in return for the assistance, the Journal reported.
Behind the push is a broad effort to shore up faith in Citigroup, which saw its stock price fall 60% in the past week to a 16-year low. The stock closed Friday at $3..77 a share and rose slightly in after-hours trading to $4.01. Citigroup has been pounded by mortgage-related losses.
In addition to $2 trillion in assets it has on its balance sheet, Citi has another $1.23 trillion in entities that aren't reflected there, according to reports. Some of those assets are tied to mortgages, and investors have worried they could cause heavy losses if they are brought back on the company's books, the Journal said.
A similar assistance structure was used successfully in the 1990s, with funding from private investors, to rescue Mellon Bank, now called Bank of New York Mellon Corp. (BKbank of new york mellon corp , from a pile of bad debts, the Journal said.

[jbowyer]

Even more ridiculous than bailing out the U.S. automakers.

Citi is a MULTINATIONAL company. There are branch offices right here in Brno, Czech Republic that employ Czechs, not Americans.

Why should U.S. taxpayers bail out Citi? To save Czech jobs?

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Citigroup? You mean the company that owns Smith Barney, who recommended that I buy shares in an Alliance Fund that was weighted heavily with Mexican Pesos just before the Peso crashed in 1994? Citi is a Mafia-controlled company. Why should U.S. taxpayers support the Mafia?

[shell_stock_runner]

Yep, the U.S. Taxpayer is being forced to bail out the rest of the Globe. Our taxation repesentation sold us down the road

[chuck44l]

Citigroup Inc. C Wow that was some fast work. So much for the short on C. Good luck all.

[jav992]

AP
Government plans massive Citigroup rescue effort
Monday November 24, 8:25 am ET
By Jeannine Aversa, AP Economics Writer
Citigroup rescue includes $20B cash injection, guarantee on billions in assets

WASHINGTON (AP) -- Rushing to rescue Citigroup, the government agreed to shoulder hundreds of billions of dollars in possible losses at the stricken bank and to plow a fresh $20 billion into the company.
Regulators hope the dramatic action will bolster badly shaken confidence in the once-mighty banking giant as well as the nation's financial system, a goal that so far has been elusive despite a flurry of government interventions to battle the worst global crisis since the 1930s.

Wall Street appeared encouraged as stock futures moved higher ahead of the market opening in New York. Dow Jones industrial average futures rose almost 2 percent. Stock markets in Britain and Germany gained more than 4 percent in afternoon trading. Citigroup shares themselves climbed 44 percent to $5.64 in premarket trading.

"If they didn't help, the damage would be beyond imagination," said Teck-Kin Suan, economist at United Overseas Bank in Singapore.

The action, announced late Sunday by the Treasury Department, the Federal Reserve and the Federal Deposit Insurance Corp., is aimed at shoring up a huge financial institution whose collapse would wreak havoc on the already fragile financial system and the U.S. economy.

"With these transactions, the U.S. government is taking the actions necessary to strengthen the financial system and protect U.S. taxpayers and the U.S. economy," the three agencies said in a joint statement. "We will continue to use all of our resources to preserve the strength of our banking institutions, and promote the process of repair and recovery and to manage risks."

Analysts said a Citigroup failure would have seized up still fragile lending markets and caused untold losses among institutions holding debt and financial products backed by the company.

"It would create chaos," said Winson Fong, managing director at SG Asset Management in Hong Kong, which oversees about $3 billion in equities in Asia. "Simply put, you couldn't borrow or lend for a while. This is a nightmare scenario."

The bold move is the latest in a string of high-profile government bailout efforts. The Fed in March provided financial backing to JPMorgan Chase's buyout of ailing Bear Stearns. Six months later, the government was forced to take over mortgage giants Fannie Mae and Freddie Mac and throw a financial lifeline -- which was recently rejiggered -- to insurer American International Group.

Critics worry the actions could put billions of taxpayers' dollars in jeopardy and encourage financial companies to take excessive risk on the belief that the government will bail them out of their messes.

The Citigroup rescue came after a weekend of marathon discussions led by Treasury Secretary Henry Paulson and Fed Chairman Ben Bernanke. Timothy Geithner, president of the Federal Reserve Bank of New York, who is being tapped by President-elect Barack Obama as his Treasury chief also participated.

Vikram S. Pandit, Citi's chief executive officer, welcomed the action. "We appreciate the tremendous effort by the government to assure market stability," he said in a statement issued early Monday.

The $20 billion cash injection by the Treasury Department will come from the $700 billion financial bailout package. The capital infusion follows an earlier one -- of $25 billion -- in Citigroup in which the government also received an ownership stake.

As part of the plan, Treasury and the FDIC will guarantee against the "possibility of unusually large losses" on up to $306 billion of risky loans and securities backed by commercial and residential mortgages.

Under the loss-sharing arrangement, Citigroup Inc. will assume the first $29 billion in losses on the risky pool of assets. Beyond that amount, the government would absorb 90 percent of the remaining losses, and Citigroup 10 percent. Money from the $700 billion bailout and funds from the FDIC would cover the government's portion of potential losses. The Federal Reserve would finance the remaining assets with a loan to Citigroup.

In exchange for the guarantees, the government will get $7 billion in preferred shares of Citigroup. In addition, Citi said it will issue warrants to the U.S. Treasury and the FDIC for approximately 254 million shares of the company's common stock at a strike price of $10.61.

As a condition of the rescue, Citigroup is barred from paying quarterly dividends to shareholders of more than 1 cent a share for three years unless the company obtains consent from the three federal agencies. The bank is currently paying a dividend of 16 cents, halved from a 32-cent payout in the previous quarter. The agreement also places restrictions on executive compensation, including bonuses.

Importantly, the agreement calls on Citigroup to take steps to help distressed homeowners.

Specifically, Citigroup will modify mortgages to help people avoid foreclosure along the lines of an FDIC plan that was put into effect at IndyMac Bank, a major failed savings and loan based in Pasadena, Calif.

Under the IndyMac plan, struggling home borrowers pay interest rates of about three percent for five years. Rates are reduced so that borrowers aren't paying more than 38 percent of their pretax income on housing.

The IndyMac plan also was used as a model for a new program by mortgage finance companies Fannie Mae and Freddie Mac and for two other failed thrifts taken over by the government on Friday. FDIC Chairman Sheila Bair has been pressing Treasury to use $24 billion from the $700 billion bailout program to put the mortgage modification program on national footing, but Paulson is opposed to that idea.

Citigroup has seen its shares lose 60 percent of their value in the past week, reflecting a crisis of confidence among skittish investors. They are worried all the risky debt on Citigroup's balance sheet will turn into losses as the economy worsens and the markets stay turbulent -- losses that could be nearly impossible to reverse.

Citigroup is such a large, interconnected player in the financial system that it is seen by Washington policymakers as too big to fail. The company has operations stretching around the globe in more than 100 countries.

Analysts consider Citigroup the most vulnerable among the major U.S. banks -- especially after it failed to nab Wachovia Corp., which was bought instead by Wells Fargo & Co. That was a missed opportunity for Citi to gets its hands on much-needed U.S. deposits that would bolster its cash position.

Citigroup was especially hard hit by the meltdown in risky, subprime mortgages made to people with tarnished credit or low incomes. Foreclosures on those mortgages spiked, leaving Citi and other financial companies wracking up huge losses on the soured investments. The company has failed to turn a profit during the past four quarters and has announced plans to slash thousands of jobs.

AP Business writers Marcy Gordon in Washington and Madlen Read in New York contributed to this report.

[gddb856]

I had made great profit on this company and i believe it will go back up to $20 by next year.

[MTnews]

Daily Market Commentary for November 24, 2008 from Millennium-Traders.Com

A very important question from taxpayers is, should Citigroup still take $400M to have a baseball field named after them when the government/taxpayers gave them a loan? (read more)

Economic data released today:

Existing Home Sales:
U.S. October Median Existing Home Price fell 11.3% on the year to $183,300; U.S. Inventory of Unsold U.S. Homes at 10.2 Months Supply.

At the NYSE closing bell on the New York Stock Exchange, here is how the major world indices and major U.S. stock indices ended the trading session on the world markets as well as the emerging markets including the stock market closing bell price:
DOW (Dow Jones Industrial Average) triple digit gain of 387.57 points to end the trading session at 8,433.99
NYSE (New York Stock Exchange) triple digit gain of 351.22 points to end the trading session at 5,311.01
National Association of Securities Dealers Automated Quotations (NASDAQ) gain of 87.67 points to end the trading session at 1,472.02
S&P 500 (SPX) gain of 51.28 points to end the trading session at 851.32
FTSE All-World Index data excluding U.S. (AW01UK) gain of 9.01 points to end the trading session at 137.32
FTSE RAFI 1000 triple digit gain of 220.90 points to end the trading session at 3,219.26
BEL 20 (BEL20) gain of 44.48 points to end the trading session at 1,828.18
CAC 40 (CAC40) triple digit gain of 290.85 points to end the trading session at 3,172.11
FTSE100 (UKX100) triple digit gain of 372 points to end the trading session at 4,152.96
NIKKEI 225 (NIK/O) - closed November 24

New York Stock Exchange (NYSE) stock market indicators for the trading session today:
Advanced stock prices 2,796, declined stock prices 424; unchanged stock prices 34; stock prices hitting new highs 1 and stock prices hitting new lows n/a. NYSE quotes for volatile stocks and market trends, as well as stock quotes, stock prices and stock symbols of Day Trading Stock Picks on the New York Stock Exchange stock market for Day Trading online and active Day Trading for those who are or would like to be Day Trading for a living: Rio Tinto (NYSE: RTP) stock price gained 13.90 points on the trading session, high on the trading session $150.20, low on the trading session $134.40 with a closing stock price at $145.01; ProShares Ultrashort QQQ (NYSE: QID) stock price shed 10.92 points on the trading session, high on the trading session $88.00, low on the trading session $76.78 with a closing stock price at $79.19; Cooper Industries Limited (NYSE: CBE) stock price shed 1.76 points on the trading session, high on the trading session $23.04, low on the trading session $19.32 with a closing stock price at $22.38; POSCO (NYSE: PKX) stock price gained 1.52 points on the trading session, high on the trading session $57.45, low on the trading session $51.01 with a closing stock price at $55.70; ProShares Ultrashort Real Estate (NYSE: SRS) stock price shed 73.47 points on the trading session, high on the trading session $227.20, low on the trading session $140.19 with a closing stock price at $143.20; Morgan Stanley Incorporated (NYSE: MS) stock price gained 3.33 points on the trading session, high on the trading session $13.62, low on the trading session $10.61 with a closing stock price at $13.38; Goldman Sachs Group Incorporated (NYSE: GS) stock price gained 14.11 points on the trading session, high on the trading session $70.10, low on the trading session $55.27 with a closing stock price at $67.42; ProShares Ultrashort S&P 500 (NYSE: SDS) stock price shed 12.84 points on the trading session, high on the trading session $110.29, low on the trading session $94.10 with a closing stock price at $100.10; Potash Corporation (NYSE: POT) stock price shed 0.78 points on the trading session, high on the trading session $64.39, low on the trading session $59.24 with a closing stock price at $59.64; ProShares Ultrashort Financials (NYSE: SKF) stock price shed 70.13 points on the trading session, high on the trading session $232.00, low on the trading session $161.02 with a closing stock price at $173.99; CME Group Incorporated (NYSE: CME) stock price gained 25.41 points on the trading session, high on the trading session $201.11, low on the trading session $171.85 with a closing stock price at $201.19.

National Association of Securities Dealers Automated Quotations (NASDAQ) stock market indicators for the trading session today:
Advanced stock prices 2,187; declined stock prices 749; unchanged stock prices 113; stock prices hitting new highs 6 and stock prices hitting new lows 273. NASDAQ quotes, volatile stocks and market trends, as well as stock quotes, stock prices and stock symbols of Day Trading Stock Picks on the NASDAQ stock market for Day Trading online and active Day Trading for those who are or would like to be Day Trading for a living: First Solar Incorporated (NasdaqGS: FSLR) stock price gained 19.19 points on the trading session, high on the trading session $116.00, low on the trading session $98.63 with a closing stock price at $112.00; Baidu.com Incorporated (NasdaqGS: BIDU) stock price gained 2.44 points on the trading session, high on the trading session $118.50, low on the trading session $109.17 with a closing stock price at $115.13; Google Incorporated (NasdaqGS: GOOG) stock price shed 5.44 points on the trading session, high on the trading session $269.95, low on the trading session $249.01 with a closing stock price at $256.99.

Market trends on the American Stock Exchange (AMEX) and stock market indicators for the trading session today:
Advanced stock prices 421; declined stock prices 228; unchanged stock prices 65; stock prices hitting new highs n/a and stock prices hitting new lows n/a.

Chicago Board of Trade Futures Market activity for the day, at time of this posting for December 2008 Contracts:
E-mini S&P 500 (ES) end of trading session price 850.75, 58.75
E-mini NASDAQ-100 (NQ) end of trading session price 1,151.75, 60.75
E-mini DOW $5 (YM) end of trading session price 8,383, 347
E-mini S&P MidCap 400 end of trading session price 473.10, 39.70
E-mini S&P SmallCap 600 (SMP) end of trading session price 235.20, 16.20

World Currencies for the Forex Market, for Forex Trading by active Forex Traders, at time of this posting:
Euro 0.7747 to U.S. Dollars 1.2908
Japanese Yen 97.010 to U.S. Dollars 0.0103
British Pound 0.6599 to U.S. Dollars 1.5154
Canadian Dollar 1.2345 to U.S. Dollars 0.810
Swiss Franc 1.1960 to U.S. Dollars 0.8361

Commodity Markets:
Energy Sector: Light Crude (NYMEX: NYM) gained $4.57 on the trading session for a closing price of $54.50 barrel ($US per barrel)
Heating Oil (NYMEX: NYM) gained $0.09 on the trading session for a closing price of $1.80 a gallon ($US per gallon)
Natural Gas (NYMEX: NYM) gained $0.32 on the trading session for a closing price of $6.82 per million BTU ($US per mmbtu.)
Unleaded Gas (NYMEX: NYM) gained $0.08 on the trading session for a closing price of $1.14 a gallon ($US per gallon)

Metals Markets:
Gold Market Price (COMEX: CMX) gained $27.70 on the trading session for a closing price of $819.50 ($US per Troy ounce)
Silver (COMEX: CMX) gained $0.87 on the trading session for a closing price of $10.38 ($US per Troy ounce)
Platinum (NYMEX: NYM) gained $40.70 on the trading session for a closing price of $866.40 ($US per Troy ounce)
Copper (COMEX: CMX) gained $0.09 on the trading session for a closing price of $1.67 ($US per pound)

Livestock and Meat Markets (cents per lb.):
Lean Hogs (Chicago Mercantile Exchange: CME) gained 0.65 on the trading session for a closing price of 64.75
Pork Bellies (Chicago Mercantile Exchange: CME) gained 1.80 on the trading session for a closing price of 92.10
Live Cattle (Chicago Mercantile Exchange: CME) gained 2.10 on the trading session for a closing price of 87.63
Feeder Cattle (Chicago Mercantile Exchange: CME) gained 1.90 on the trading session for a closing price of 91.30

Other Commodities (cents per bushel):
Corn (Chicago Board of Trade: CBT) gained 16.75 on the trading session for a closing price of 371.00
Soybeans (Chicago Board of Trade: CBT) gained 44.00 on the trading session for a closing price of 884.00

Bond Market:
2 year bond shed 7/32 on the trading session for a closing price of 100 17/32 with a Yield of 1.21, Yield Change 0.12
5 year bond shed 28/32 on the trading session for a closing price of 102 17/32 with a Yield of 2.20, Yield Change 0.19
10 year bond shed 1 8/32 on the trading session for a closing price of 103 14/32 with a Yield of 3.34, Yield Change 0.15
30 year bond shed 2 6/32 on the trading session for a closing price of 112 18/32 with a Yield of 3.75, Yield Change 0.08

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