US Government to Own 1/3 of Citi
Shares drop on news; US dollar continues in strength on the currency market
The US government and Citi have agreed to a deal in which the government will increase its stake in Citi to 36%. Even as the government owns more than 1/3 of the embattled bank, almost 3/4 of existing shareholder stake will be eliminated.
On the news, Citi shares dropped rather dramatically — not much of a surprise. The US government also expects to make changes with the Board of Citi. This type of government interference is beginning to cause some concern.
Since this is seen as a sort-of quasi nationalization of Citi, it is clear that the situation in the U.S. continues to deteriorate in terms of economy. As a result, the US dollar is likely to remain strong in the near term, since this will prompt more forex traders in a flight to safety.
See Also
- Forex Traders and the Currency Market
Learn about forex trading
Invest2forex.com accepts no liability whatsoever for any direct, indirect or consequential loss arising from the use of this report or its content. Any forecasts are for illustrative purposes only and are not to be relied upon as advice or interpreted as a recommendation. This report is not to be construed as providing investment services in any jurisdiction where the provision of such services would be illegal. Nothing herein shall be construed as a recommendation to buy or sell any financial instrument or security. This communication prepared by leading forex broker is for information purposes only. Investors should also consider this report as only a single factor in making their decision to make currency investment.
Windows Virtual Private Server (Windows VPS) forex vps mt4 vps