Bailout economics

 

Bailout money given to Citibank by the government (US taxpayers) = $45 Bil

“Negotiated” stake in the common stock of Citi for the “investment” =  35%

Value of Citi’s common stock before announcement = $15 Bil

Value of Citi’s common stock after announcement = $8 Bil

Total “return” to US taxpayers thus far = -82%

One day “return” to US taxpayers (Feb 27, 2009) = -15%

I wonder if this was a good deal!!!