Citi shareholders may not necessarily be wiped out

Is it really a case of the government vs. shareholders? Well, in certain scenarios, it is. If the government were to seize full control of the bank, of course shareholders would get wiped out. But we're dealing with likely possibilities that fall short of a full takeover.

Fortune suggests that a sort of creeping nationalization, that merely dilutes shareholders heavily, may be the best outcome for shareholders. That way they can hold on for the long, long term in hopes of a rebound. It may even lead to a short-term rally if Mr. Market perceives the bank's TCE status has been fixed. A similar outcome might be possible with conservatorship.

For more:
- here's the Fortune article

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