Citigroup Gets $12.5 Billion Infusion

AP:

Citigroup Inc. secured $12.5 billion in much-needed cash and slashed its dividend as a huge drop in the value of its mortgage holdings sent it to its first quarterly loss in 16 years.

The nation's largest bank, which lost $9.83 billion in the last three months of 2007, said Tuesday the value of its mortgage portfolio fell by $18.1 billion and slashed its dividend to boost its cash levels.

The $12.5 billion investment from outside investors included $6.88 billion from the Government of Singapore Investment Corp. for a 4 percent stake. Other investors were Capital Research Global Investors, Capital World Investors, the Kuwait Investment Authority, the New Jersey Division of Investment, shareholder Prince Alwaleed bin Talal of Saudi Arabia and former chief executive Sanford Weill and his family foundation

Read the whole story: AP

Comments

[Justinpassing]

Yesterday was a pretty impressive up day for the Dow; especially in lieu of the fact that there was no reason for such a jump.....other than the fact that the man behind the curtain was in possession of the bad news scheduled for release today and knew the market would plunge. No doubt "curtain man" thinks of it as hedging; the rest of us think of it as manipulation and fraud. Who's the new chairman of the NYSE.....some guy named Faegin i'd guess.... "oh you got to pick a pocket or two"
The markets are a soulful reflection of todays establishment leadership.....so inbred it finally destroyed itself.

[biwee]

What a scam! Prince waltzes out with about $100 million. And, what about Rubin, who has been paid something in the range of $100 million since he joined Citigroup? And, did Citigroup pay any bonuses in Dec of 2007 to anyone who participated in the subprime/alt a/
siv scam?? The losers are the stockholders, not the scam artists!

[KQuark]

Great so the Chinese can own my mortgage. Why not they own the US government.

[curiousasheck]

A long conga-line of haggard CFOs with begging bowls in hand.

Get the picture?

[EinChicago]

So much for the CNBC rumors yestereday about 24 billion writedown and no funding.

If this credit debacle has proven one thing it's that Wall Street "rumors" are about as accurate as the National Enquirer. The investing industry has been exposed as being akin to high school in teh weight it gives to gossip and rumors.

[thegreatgiginthesky]

It is only monopoly money people.

[Stretchumall]

Ther is still money to be made. Retirement funds have yet to be taken, the poor working people still have food stamps that can be taken.


Got Rope?

[MilwaukeeDan]

This could be called payback or prop-up by some of the worlds big financial players. They can't afford to have the worlds biggest economy exposed for what it is, broke. This is what all the hand holding by the prince and the president is all about.

[VivaZapata]

why would financiers invest in a company standing in quicksand?