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Doh! U.S. Takes $1.5 Billion Hit as Citi Drops

January 22, 2010, 5:40 am

Highlighting the complicated ties that have arisen between the government and Wall Street since the taxpayer’s bailout of some of the nation’s largest banks, President Obama’s proposal, unveiled Thursday, to reign in some the largest financial institutions sent some of Uncle Sam’s own share holdings down.

The New York Post noted that because President Obama’s remarks prompted a sell-off of U.S. banking stocks, the U.S. government saw its own investment in Citigroup plummet, as well.
The U.S. government holds a 27 percent stake in Citigroup, making it the banking giant’s largest investor. And as Citi’s shares plunged 5.5. percent yesterday, that stake lost $1.5 billion in value, The Post said.

Aside from Citigroup, other banking stocks also tumbled: JPMorgan Chase fell 6.59 percent, Bank of America dropped 6.19 percent, and Morgan Stanley declined 4.21 percent.

http://dealbook.blogs.nytimes.com/2010/01/22/us-takes-a-15-billion-hit-as-citi-drops/

6 Comments

1. January 22, 2010
8:17 am

it seems hypocritical to bail them out and then when they are recovering let’s regulate them into government puppets–might as well create national banking along with national health care this guy should have a wall street education, and understand business,
credit, unemployment & supply and demand.

— john libris

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2. January 22, 2010
9:04 am

This info certainly points out the facts that a non schooled(in finances/ramifications) leader with equally inept sycophants can cause long term fears in the markets which affect all the citizens. This is particularly intensified by the absence of the baffelgab/Gibbserish/Emanuelbull, which indicates they are in “it” up to their necks and cannot extricate themselves. They do not desire to save the nation but to “unsully” their battered and tattered reputations…which cannot be done. (see Mass election results/comments). The possibility of the DJ “market” sliding to 6500 is revived, and, even abetted by these operatives in Washingdung Dist of Clowns…right. Pogo?

— popskoenig

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3. January 22, 2010
10:20 am

Couldn’t have happened to a nicer bunch of Pirates. Am I glad I watched Conan last night. Not only did Robin Williams fly NBC a squadron of fingers, he and Conan shared some Pirate words. We’re gonna lose a lot more than that on Citi, mark my words to market.

— Abby Tucson, AZ
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4. January 22, 2010
10:29 am

Maybe Obama should impose another tax on banks (on top of all the others proposed) to recoup their losses in Citi after the market sell-off from Obama’s financial reform announcement.

— Marty

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5. January 22, 2010
10:51 am

Sometimes doing the right thing takes courage in the short term. It will all come to nothing if the banking industry doesn’t right itself on a firm footing. we could have bigger losses if we fall i to a cycle of distress and collapses.
— fxp

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6. January 22, 2010
2:59 pm

dang! let me get tis straight….America ran from 1776 to 1910 and had a total debt of $2.6 billion….and from 1910 to 2008 it adds up to over $12 TRILLION….

Well….tats looks like the more government gets involved…..the we the people of America gets the short in of the stick.

“It is the aim of good government to stimulate production, of bad government to encourage consumption.” - Jean Baptiste Say, French economist 1767-1832

“A democracy cannot exist as a permanent form of government. It can only exist until the voters discover that they can vote themselves money from the public treasure. From that moment on the majority always votes for the candidates promising the most money from the public treasury, with the result that a democracy always collapses over loose fiscal policy followed by a dictatorship. The average age of the world’s great civilizations has been two hundred years. These nations have progressed through the following sequence: from bondage to spiritual faith, from spiritual faith to great courage, from courage to liberty, from liberty to abundance, from abundance to selfishness, from selfishness to complacency, from complacency to apathy, from apathy to dependency, from dependency back to bondage.” Alexander Tyler

— madmilker