The terms of the government's semi-nationalization of Citigroup should come no later than Thursday according to FT. The terms of the deal are still not available, but as widely discussed include conversion of a potion of the government's preferred stake into common, and presumably other preferred shareholders. such as sovereign wealth funds and pension funds. will also convert some of thier $30 billion preferred into common. Today investors have been snapping up Citi stock in fervent anticipation of getting massively diluted over the next few days.
In the meantime, stock market has not hit a bid today after Bernanke's "calm demenanor" and prediction that the recession will end in 2009, Obama's "all shall be well speech" # 293 later, and the slew of great economic data earlier.
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