Not too long ago, it seemed fait accompli that Uncle Sam would end up a large owner of the nation's biggest banks. But a favorable stock climate has allowed some big banks, notably Bank of America and Wells Fargo, to raise more than expected via direct offerings, and asset sales have gone well.

As it looks now, all the big banks, except Citigroup, will escape an onerous government ownership stake, notes Bloomberg. It alone seems to be destined for a big exchange offer--preferred shares for common shares--that will leave taxpayers with a 34 percent voting stake. So Citigroup alone may be subject to the type of government management initiatives--on executive pay for example--that other banks were hell-bent on avoiding. This will likely have an effect on recruiting in trading and banking. I'm sure Citi CEO Vikram Pandit and others are thinking about this, but what else can they do? 

For more:
- here's the Bloomberg article

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