Feb 27 2009
Citigroup Gets Another Rescue
When I began my career in banking over 25 years ago, I was hired by Citibank. John Reed had just taken the helm and the 1980’s were a heady period for the powerful bank. It is difficult to fathom the fact that Citi has fallen so far and that an American bank would be headed towards nationalization.
The Treasury Department said it would convert as much as $25 billion of preferred shares into common stock provided private holders agree to the same terms, the government said in a statement today. The conversion would give the U.S. a 36 percent stake in the New York-based company.
Think about it, at $1.25 a share, Citibank stock is selling for less that the bank charges to use its ATM’s. The Mets’ new stadium, named Citi Field, is now derisively referred to as Debit’s Field. This recession is not going to end anytime soon.
Denford,
I am a customer of Chase. They never charge me for going on their ATM machines, if they did, I would totally agree with you about it being plain highway man robbery. It is the same as you said. If I go to a McDonalds and go to a Wachovia ATM machine, I’ll have to pay 99 cents, since I’m not a member of it. Bummer, eh?
Citi-Bank? Ha! More like Govi-Bank, if you know what I mean ;). The unique thing about how Citi-Bank used to be, was that it was like any other bank today. Independent banks are much better because they are easy because they are smaller, which helps them with Customer Satisfaction.
I like credit unions - good service and you are using money from other members investments. Citi-bank will soon become Citi Federal Bank as some in congress want to nationalize some of the banks