Citigroup to issue $3 billion in common stock

When it was announced that it would sell $6 billion in preferred shares, Citigroup joined the herd of other top banks. It just announced it will issue $3 billion more in common shares--at a 4 percent discount--a move that will further bolster its capital position. In particular, notes the New York Times, it eases the capital crunch that the issuance of preferred shares created; certain regulatory limits were in play with preferred share sales. The issue is whether this will solve Citigroup's capital problems. Meredith Whitney, the Oppenheimer analyst who has emerged as the bank's bete noire, says the dividend is still in danger, despite assurances from CEO Vikram Pandit that the payout was in line with earnings projections. She thinks the bank needs to raise up to $18 billion more.

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

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