Johnharding.com, 28 Feb 2009
As we correctly predicted, the U.S. is beginning to call in its markers.
If you read the fine print on the U.S. conversion of its Citigroup debt to ordinary shares in the company, you could have predicted it too.
Here’s the fine print:
The U.S. said it will convert its stake in Citigroup to the extent that Citigroup can persuade private investors, including several big foreign government investment funds, to do so.
The U.S. Treasury Department will match the private investors’ conversions dollar-for-dollar.
The arms have been twisted successfully, and the U.S. will convert 25 billion dollars of capital into Citigroup ordinary shares.
So whose arm got twisted?
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