Like almost all other financials, Citigroup’s stock is dropping like crazy. But Citigroup has more to worry about than just the economy: The treasury owns 18% of Citigroup shares and does not want them. 18% is just above 5 billion shares, and they’re currently dropping about 40 million shares in the market every day, which is putting pressure on the stock price and pushing it downwards.
Apparently the treasury is impatient, and doesn’t really care about making money with the stock, that was bought at $3.25 back in September of 2009. The treasury doesn’t want to lose money either, which means that the stock will probably never see a level below $3.25.
C is currently trading $3.66. Let’s see how low the stock will drop before it rebounds.