Let’s do some math: $45 billion cash injection - 40% of $10 billion market cap = $41 billion in free money for Citigroup from the US taxpayer. That’s what has stock futures up right now. The $45 billion cash that was supposedly going to be paid back with interest could be converted into $4 billion in stock. But hey, it’s “a transaction that wouldn’t cost taxpayers more money.” So apparently we never intended to get back that $45 billion. The article mentions that Citi would prefer if the government stake was closer to 25%. I’m not sure if that means getting an even worse deal or converting fewer of our warrants.
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