U.S. Taxpayers Get Screwed In Favor of Citi Shareholders

With the Citigroup (NYSE: C) news today, the U.S. government is sending the absolutely ridiculous message to the banks that "if you let us give you more money, your stock will go up." You hear that Banc of America (NYSE: BAC), Wells Fargo (NYSE: WFC), JP Morgan (NYSE: JPM)?

It should be the reverse. Citi shareholders should be wiped out. Taxpayers are getting screwed --- again!

Hey Citi:
- I don't want to guarantee $306 billion of your junk assets.
- I don't want warrants to buy your penny-stock with a ridiculous strike price of $10.61, when your stock closed at $3.77 on Friday.
- I don't want a measly 8% dividend on the preferred stock, when the going rate in the market, set by Mr. Warren Buffett is 10% (via GS and GE).

The problem is that Citi, AIG (NYSE: AIG) and the others have the U.S. economy by the balls. They can wave the "IF WE GO DOWN, WE'RE TAKING YOU WITH US" flag in front of the regulators face and they get what they want.

Now Citi, like AIG, will become an endless black-hole, sucking up billions and billions of taxpayers dollars, with nothing in return. Mark my words, today's package for Citi will be the start of many for the company and that's not to mention the other banks. An absolute outrage!

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