Citigroup’s Q4 results to be announced Friday are expected to show a loss of $6bn to $10bn and provide details of its planned break-up. Investors on Thursday drove down Citi shares amid intensifying fears that the government will have to rescue the troubled financial group, less than two months after a $300bn bail-out. Any further government intervention would bring Citi a step closer to nationalisation. The US government already owns the rights to become Citi’s largest shareholder through warrants to buy a 7.8% stake. The injection of more capital, in the form of common or preferred shares, would only increase the government ownership in the company and probably cause sharp losses for investors.

This entry was posted by Gwen Robinson on Friday, January 16th, 2009 at 5:47 and is filed under Capital markets. Tagged with citi. Edit this entry.