Wednesday, May 20, 2009

The new 40 acres and a mule

On paper Citi's common stock has a book value of approximately $22 billion dollars. However, the US Governement has given the bank more than $45 billion dollars in taxpayers money. For an investmetn like that each tax payer could and probably should have recieved 18.4 shares of Citi. But that did not happen, instead the executives adn VPs there keep hundreds of thousands of shares adn the US citizens got the sort end of the stick. All because Citi was "too big to fail". So its OK if a homeowner failes, he can be kicked out f his home; but if the mortgage company failes then its a problem.

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