Citigroup Shareholders Lose $16 Billion After Reverse Stock Split

On March 21st, Citigroup announced a 1-for-10 reverse stock split, effective May 9, 2011. According to Citigroup CEO Vikram Pandit, “Citi is a fundamentally different company than it was three years ago.  The reverse stock split and intention to reinstate a dividend are important steps as we anticipate returning capital to shareholders starting next year.” […]

Bailout Funds To Fannie and Freddie Come At High Cost

Despite the public uproar over the bailout of the financial industry, the U.S. Treasury is no pushover when it comes to demanding stiff terms on its loans. The returns on some of the loans made to various banks and financial institutions would make a payday lender blush.  For example, when the U.S. completes  the sale […]

One West Bank Seeks Growth With Citibank Loan Purchase

One West Bank, newly chartered in early 2009, is the banking industry’s biggest success story. At a time when many banks are failing or struggling with nonperforming loans and slow growth, One West has earned almost $2 billion in profits for its founders by acquiring three failed banks, including giant IndyMac Bank  which failed in […]

Problem Bank Candidate Citigroup Facing Tougher FDIC Regulation

Citigroup Faces Tougher Government Regulation Citigroup, probably the most financially challenged of the major banks, is facing increased regulation by the FDIC.  In early June, it was noted that FDIC Chairman Sheila Bair was becoming increasingly frustrated with Citigroup’s management and their inability to implement changes necessary to strengthen the bank. At one point early […]

Problem Banks Took “Risks They Did Not Understand”

In a recent interview with Forbes, FDIC Chairman Sheila Bair readily acknowledged that the primary reason for banking losses and failures was due to banks taking on excessive risk in their loan portfolios.  Chairman Bair also discussed her ideas on regulatory changes that will prevent a future banking crisis, the health of the FDIC insurance […]

Will Citigroup Wind Up On The Problem Bank List?

Despite Government Aid, Citi Still Lags The Wall Street Journal is reporting that earlier this year the FDIC had attempted to have Citigroup’s financial health rating lowered to the point that would have resulted in Citigroup being added to the Problem Bank List. By lowering the rating on Citigroup, regulators would have been able to […]