It is Citigroup Day. Missmarketcrash has not read anything remotely cheerleader-y about what is expected to be announced. It has been anticipated all week, and, what better day than a Friday? Word has it that bailout number 3 has been structured in a way so that it is "not nationalization" and will depend on an equal contribution from private investors to justify the phrase "Government Stake" rather than the N-word. On the news-for-the-people side, the criticism is massive by those that have deconstructed the rather complex plan down to its naked self. From the murmurs of the investment world, it is "unclear" whether private investors would convert preferred stock, but, word has it both the Singapore Government Investing Fund and that Saudi Prince will be converting. From the gambling side of individual investors, there seems to be some momentum to short the stock which will not particularly help matters. With that, a Missoni-knit up and down chart is on the deck for the time being.
I shall await the announcement and get back to you, but, I must say, it does seem an awful lot of thought and discussion has gone into rescue number 3. And no matter what, anything the banks or the U.S. government does will be met with criticism. Perhaps a star or two can be given out to the Government for at least thinking about this one a bit more.