The Residential Real Estate Crash Index Message Board

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Strategies & Market Trends : The Residential Real Estate Crash Index

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To: DebtBomb who wrote (191883)	3/19/2009 2:50:03 PM
From: geode00	Read Replies (1) of 306849

Citi's Insult: Reverse Stock Splits And Office Renovations March 19, 2009 11:08 AM ET \| Kirk Shinkle \| Permanent Link \| Print We've got a new recipient for the John Thain Toilet Award! Forget your AIG bonus outrage. Today, Citigroup shows that whole "chastened investment banker" meme is basically a lie. According to Bloomberg, Citi gets $45 billion in taxpayer bailout money and decides its chief executive and top lieutenants should spend $10 million on new offices. Crass or stupid? You decide. As Bob O'Brien puts it at Barron's: The only takeaway is that these executives don’t seem to understand how unseemly this conduct looks in an era where the taxpayers who are keeping them afloat are too afraid to buy new floormats for their cars because it seems like a discretionary purchase - a no-no for anybody worried they or a family member could be unemployed at any time. That's not the worst of it. Citi other big announcement is its plan to further punish common shareholders (because $1 a share earlier this year wasn't bad enough). Citi's deal with the government to shift preferred shares into common stock (press release is here) is only going to dilute you again. As for that reverse stock split? Well, the price goes higher, but the value of your stake says the same. Reverse splits are a refuge for companies who simply don't like where their stock is trading.... usnews.com The tone deafness of these government subsidiaries remains perfectly intact. Perhaps the next congressional hearing with Pandit should include nerf balls for participants to throw at his head. The only answer appears to be government payscale and government office budgets.

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