Premarket: Citi plunged 37% after reaching a deal with the U.S. government for Uncle Sam to convert up to $25 billion
The stock price drop for drug stocks “reminds me of the knee-jerk reaction seen in the early days of the Clinton administration when they started talking about universal healthcare and coming down hard on branded drug margins,” said Edmund Shing, a strategist at BNP Paribas.
Citi meanwhile plunged 37% after reaching a deal with the U.S. government for Uncle Sam to convert up to $25 billion of preference shares into common equity. The deal could take U.S. government ownership up to 36%, and existing shareholders would own 26%.
“I am positive future capital injections will be forthcoming as there is simply no way this company does not need, and will not need, more money,” said Dan Greenhaus, an analyst in the equity strategy group of Miller Tabak.
(Excerpt) Read more at marketwatch.com …
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