End of the Era of CitiGroup Era

[annexa]

How much GIC and Temasek lose in this round? GIC should also get pay cut right?

 

[klkang]

Please don't speak too soon and see what is going to happen to the share prices, since it is now at US$3.77.

Buy at above US30 and now at $3.77.

Nevertheless, in the event federal bailout is required, you can kiss your equity good regardless on whoever endorses it.

Point for discussion. The GIC deal is converted preferred securities - ie share I suppose rather then bonds , so it rank one notch above ordinary share but behind all debt / bonds. So where the fuck is the downside protection that GIC claimed. Share price has came down from $30 to $3 these instrument are virtually worthless if the bailout fail. If it does succeed, equity price got to raise above $30 + 20% (conversion premium) before ots worth something . i think GIC lugi BIG TIME.. US$6.2B

 

[lifeafter41]

Point for discussion. The GIC deal is converted preferred securities - ie share I suppose rather then bonds , so it rank one notch above ordinary share but behind all debt / bonds. So where the fuck is the downside protection that GIC claimed. Share price has came down from $30 to $3 these instrument are virtually worthless if the bailout fail. If it does succeed, equity price got to raise above $30 + 20% (conversion premium) before ots worth something . i think GIC lugi BIG TIME.. US$6.2B

Whether the bailout by the US government will work or last remains to be seen, as the amount of toxic assets will continue to increase as there is more foreclosures due to job losses in the US and the resetting of the ARM interest for the home loans made out. Understand the majority of the loans will reset only next year, this is only just the beginning.

As for the equity price, as it is being said, it is for the long term, whether if the is 5 years, 10 years or even 25 years would remain.

There is always the opportunity cost to think about.