Chronicles Of Depression 2.0: #074

Citigroup to sell $3 billion in stock

Citigroup said Tuesday that it would sell $3 billion of new common shares in another effort to shore up its balance sheet.

The shares are expected to be sold on Wednesday at a 4 percent discount to the prevailing market price. With the sale Citigroup, battered by write-downs on mortgages, will have raised about $39 billion since November.

Emphasis added by me.


While many banks have rushed to raise capital lately, the effort at Citigroup, which has lost nearly $40 billion from the credit crisis, stands out in its scale and diversity. It has raised money from public shareholders, foreign governments and big institutions, as well as from its former chairman, Sanford Weill. Citigroup is also shedding billions of dollars of assets.

Emphasis added by me.

I’m still waiting for the inevitable: massive layoffs and branch closings.

Explore posts in the same categories: C.O.A.T. - Money, Depression 2.0

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