With default rates soaring, mostly on loans the government forced, and the market tanking, thanks in part to Obama's message of hopelessness, Citibank is being eyed for a larger stake by the government, The Wall Street Journal is reporting. What a scam... more on that later. Right now just digest this - the nationalization of banking in the US is definitely happening... no matter what Obama's mouthpieces say to calm roiling markets. And oh yeah, they released this business news on a Sunday night during the Oscars...now go watch TV.
Citigroup Inc. is in talks with federal officials that could result in the U.S. government substantially expanding its ownership of the struggling bank, according to people familiar with the situation.
While the discussions could fall apart, the government could wind up holding as much as 40% of Citigroup's common stock. Bank executives hope the stake will be closer to 25%, these people said.
Any such move would give federal officials far greater influence over one of the world's largest financial institutions. Citigroup has proposed the plan to its regulators. The Obama administration hasn't indicated if it supports the plan, according to people with knowledge of the talks.
When federal officials began pumping capital into U.S. banks last October, few experts would have predicted that the government would soon be wrestling with the possibility of taking voting control of large financial institutions.
WSJ Article
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