How desperate was Citigroup? There's no doubt that the big bank needed a massive infusion of cash to shore up its capital ratios. It remains to be seen if the $7.5 billion infusion will be enough. There are some doubters out there, notably Meredith Whitney, of CIBC Global Markets. The New York Post notes that the Abu Dhabi Investment Authority will get a stupendous 11 percent dividend on the convertible preferred shares it will buy. That's much sharply higher than the interest rates paid by even the riskiest junk issues. That's not really stoking a lot of confidence. Obviously, Citigroup still has some work to do to make it through this crisis. All of this begs larger questions...  

For more:
- here's the New York Post article

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