Wednesday, February 25, 2009

Citi Deal Could be Announced Wednesday

by Bill McBride on 2/25/2009 12:59:00 AM

Most of the following article is on the stress test, but it does mention that the Citi deal could be announced Wednesday.

From Eric Dash at the NY Times: Stress Test for Banks Exposes Rift on Wall St.

Citigroup, which maintains that it is well capitalized by its regulators’ standards, was nonetheless locked in negotiations with the government on Tuesday over a third rescue. Under the plan, the government is expected to raise its stake in Citigroup to 30 to 40 percent, from about 8 percent now. The deal, which was moving toward completion and could be announced as early as Wednesday, would bolster the level of common stock that investors are focused on.