Not everyone believes that Citigroup’s (C) current stock sale of $4.5 billion will end the large bank’s need for capital.
Oppenheimer analyst Meredith Whitney thinks that ongoing problems at the firm will lead it to sell asset or need to raise another $10 billion to $15 billion according to Reuters.
On the face of it, that could dilute current Citi shareholders by another 12% or more. The news of the $4.5 billion has taken the stock down over 3% to $25.51.
If Whitney is right, Citi’s stock is moving back under $20.
Douglas A. McIntyre