Banking, finance, and taxes
Sort Of Nationalizing Citigroup (C)
Published:
Last Updated:
The Wall Street Journal says that the federal government is in talks to put more capital into Citigroup (C) and may end up owning 40% of the big banks.
According tothe paper, “While the discussions could fall apart, the government could wind up holding as much as 40% of Citigroup’s common stock. Bank executives hope the stake will be closer to 25%.”
The news may indicate what the future relationships of large banks and the government will look like. Instead of nationalizing the firms, the Treasury, Fed, or FDIC will take the lead in having de facto control of institutions like Citigroup and Bank of America (BAC). Common shareholders will still have stakes, but the roles of the boards that they elect will end up being largely ceremonial.
Douglas A. McIntyre
ALERT: Take This Retirement Quiz Now (Sponsored)
Take the quiz below to get matched with a financial advisor today.
Each advisor has been vetted by SmartAsset and is held to a fiduciary standard to act in your best interests.
Here’s how it works:
1. Answer SmartAsset advisor match quiz
2. Review your pre-screened matches at your leisure. Check out the advisors’ profiles.
3. Speak with advisors at no cost to you. Have an introductory call on the phone or introduction in person and choose whom to work with in the future
Take the retirement quiz right here.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Editors' Picks
