Tuesday, September 15, 2009

Citi looks to shrug off the govt

  • Citigroup: Still has $10B of risky assets. US govt owns 34%. C planning perhaps a $5B equity issuance to reduce govt. stake.
  • Impact of news on FX rates: concern over trade dispute between China and US led people back to USD, taking away from EUR.
  • Treasury sold $15B of bills a week
  • Gas futures: 7.5 year low
  • Judge tossed out SEC settlement with BOA/Merrill bonus issue. SEC usually settles, but in this case the essentially the shareholders are being asked to pay the fine. This poses questions about broader government involvement.

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