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Saintjames 12-07-2009 09:43 AM

Have a small position in C here myself. See my other Citi thread.


Citigroup in race to repay bail-out funds
By Francesco Guerrera in New York

Published: December 6 2009 22:33 | Last updated: December 6 2009 22:33

Citigroup is racing against the clock to convince US authorities that it be allowed to repay $20bn of bail-out funds, with insiders and regulators arguing that unless the bank acts in the next 10 days it will have to wait for more than a month.

The short window for a decision on the repayment of funds from the troubled asset relief programme raises the stakes for Citi in its quest to free itself from the shackles of the government, which also owns a 34 per cent stake in the lender.

Separately, the Kuwait Investment Authority, the Gulf state’s sovereign wealth fund, has made a $1.1bn profit after selling its entire 5 per cent stake in Citi for $4.1bn – less than two years after acquiring preferred shares in the ailing bank during the financial crisis.

The sale earned the sovereign wealth fund a 37 per cent return on its investment.

Citi’s need to pay back the Tarp funds has been heightened by last week’s surprise announcement that Bank of America had raised $19.3bn to repay $45bn. That move left Citi and Wells Fargo as the only two big banks that have yet to repay Tarp and remain subject to the strict limits on compensation and operations that accompanied last year’s government cash injections.

People close to the situation said that unless Citi could launch the capital-raising effort required to pay back Tarp by the middle of next week, it would become practically impossible to do so until after it reports year-end results in mid-January.

Lawyers said it was not technically impossible to raise capital between the end of a quarter and the announcement of results but added that disclosure rules could make it difficult, especially for a company as complex and geographically diverse as Citi.

Citi’s executives have been lobbying Washington to be allowed to repay Tarp, arguing that the bank has cash reserves of more than $240bn and its financial performance is improving. However, Citi’s situation is further complicated by the US government stake.

People close to the situation said the government was willing to co-ordinate a sale of at least part of its stake with Citi’s own capital-raising but the tight timing – and the authorities’ lingering concerns over the bank’s health – might delay that.

Citi declined to comment but insiders acknowledged that unless it could launch a share offering by December 14 or 15, it would probably have to wait until at least late January.

BofA’s ability to raise $19.3bn – more than its $18.8bn target – in one day at a slight discount to the previous closing price underlined investors’ confidence in the ability of banks to rebound, especially when free from government restrictions.

Saintjames 12-10-2009 03:54 PM

With the equity offering and the govt selling combined I calculate 47 billion more shares coming back into the market. Is this a good thing for C?

Who's buying this at this point besides Cramer? See:

multiowner 12-14-2009 07:18 PM

Is now the time to shop C at 3.70

Tis the season......

pdtpatrick 12-16-2009 12:09 AM

Don't jump the gun - give it time. A bit more cheaper and is good to go. However if you are planning on going long then i would start buying at these levels and accumulating.

If you are going short then you can either be aggresive and buy now, or wait and see whether it gets cheaper or wait for confirmation on reversal and play the upward momo.

Just my $.02

teenwolf41 12-17-2009 06:41 PM

I think the financials can go lower. Remember, the market has to dissect around 80B of equity offering from Citi, BAC and WFC and I think that will send them lower. Even though I own BAC, I wouldn't be a buyer here, probably would stay to the side lines until years end.

Saintjames 03-29-2010 01:26 PM

Anyone else still loading up with C in here? In a couple days we get the details of the US governments plans to get out of C via Morgan Stanley offering. A lot of daily press, upgrades, insider buys. Seems like a strong buy even around $4.20?

Saintjames 05-06-2010 07:48 AM

Have been making my final buys in and around $4.10 - $4.20. Anyone else loading up in here?


Citigroup (NYSE:C) CEO Vikram Pandit said in a recent interview that the bank will soon put into motion a $200 million small business fund which will offer loans to help small businesses in lower and medium income communities.

The targeted focus of the loans will be charter schools and service institutions which the bank usually hasn’t done much business with in the past.

Dubbed the ‘Communities at Work Fund,’ it’ll be marketed by Opportunity Finance Network, a group of 160 financial institutions, while being managed by Calvert Foundation.

Pandit said in an interview in the Wall Street Journal that it was also an opportunity: “Given that we’re not the largest retail commercial bank in the US and that there are many which are much larger than us, we’re doing everything we can to extend our reach.”

Normally most of these types of small business loans are used to help business start-ups like translation services, restaurants and bakeries, among other sectors where a community may be under-served in.

Pandit added it will not only help the bank but aid communities that are in need of a number of services which a number of growing small businesses can help meet.

The size of the loans will range from $14,000 to $500,000.

Saintjames 05-07-2010 12:19 PM

Added to C again today @ $3.98. Should be the last buy (I hope).

Miles 05-17-2010 03:43 PM

Awesome Article on Citigroup from today: Buy, Sell or Hold: Citigroup Inc. (NYSE: C) Is a Turnaround Play that Investors Can't Afford to Miss

Bought some more this afternoon at $3.80.

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