Chapter 429 429 Citi's War! Close the position!

  Time passed in a flash.

  Having had breakfast, everyone turned their attention to current affairs news.

  [Citibank revised the 2008 fiscal year loss figure, operating business net loss of 32.1 billion US dollars]

  Previously, Citi reported a loss of US$12.14 billion from continuing operations in fiscal 2008, which was corrected to US$32.1 billion.

  Citigroup was once the largest bank in the United States and one of the banks that suffered the most in the current credit crisis.

  So far, the US government has provided the group with US$45 billion in financial support and provided guarantees for the potential losses of its US$300 billion venture capital. The guarantees belong to the guarantees, but Citibank’s own losses have been filled in.

  Wang Guanxi was a little surprised and said: “It turns out that Citibank’s business has lost $32.1 billion. It seems that Citibank’s stock price will fall a lot tonight.”

  The news that Citibank will be state-owned was only reported by the Wall Street Journal, and it is still uncertain whether it will happen.

  And this operating business has a net loss of US$32.1 billion, which is indeed bad for Citibank’s stock price. Perhaps the stock price has fallen by more than 10% today, and of course it may have fallen by more than 20%.

  Wu Zhanhai asked excitedly: "BOSS, where do we start to close the position tonight?"

  Wang Guanxi thought for a while and said: "After falling below $20 per share, start to liquidate your position slowly."

   "However, it is still unknown whether it can fall below $20 per share today."

  Wu Hongsheng said in a certain tone: “If it falls below today, it won’t break, and it will definitely fall below tomorrow”

  Li Guangyu also echoed: "Yes, this Citibank is estimated to be nationalized, and then has the same fate as AIG."

  Wang Guanxi smiled and said: "I hope so, today Citibank's stock price is set to fall sharply, just look at how much it fell!"

  At this time, the news came again.

  【President Abama Announces a Draft Budget of 3.6 Trillion USD】

  【Aubama President’s proposal will provide $750 billion in new funds to rescue the banking industry】

  This is good news for the stock market.

  Wang Guanxi: "Economic stimulus plans are getting more and more."

  Lu Jianyan asked: “Originally, Citibank lost a huge loss of US$32.1 billion, but now this good news won’t make Citibank’s stock price drop smaller tonight, right?”

  Guan Zhenyi: "It should not be, after all, it's just a talk"

  Lin Jiyang echoed: "Yes, Citibank has to fall at least 15% tonight"

  Wang Guanxi nodded: "Maybe the position can be closed tonight."

  At this time, 20 minutes before the opening of the US stock market, the news came out again.

  Bloomberg: [Citigroup has been nationalized soon]

  Citigroup recommends that the U.S. government convert its preferred stocks into common stocks to improve corporate assets and reduce financial burdens.

  The US government injected US$45 billion into Citigroup through the purchase of preferred stock last year.

  Since the preferred shares have no voting rights, the US government does not participate in the management of the group.

   reported that Citigroup wants the government to hold 25% of the common stock, and the government wants to increase the equity to 40%. The two sides are bargaining.

  The conversion price of equity is the key to negotiation.

  The government needs to consider the interests of taxpayers, and Citi needs to consider the interests of shareholders. The level of pricing is related to the ups and downs of the financial market.

  The British "Financial Times" reported: The bottom line that Citigroup can afford is that the government owns 40% or even 50%. If this bottom line is exceeded, bank nationalization will become a reality.

  If the government obtains 40% of the equity and becomes the largest shareholder of Citi, it will mean that Citi is partly state-owned. Whether the government will directly intervene in the management of the company or become a controlling shareholder in the next step is still in suspense.

This move also means that the government does not need to use more taxpayers to save Citigroup, and Citigroup no longer has to pay dividends to preferred shares held by the government, but the interests of ordinary shareholders will be diluted, and taxpayers' money will have to bear business risks. .

  Soros Quantum Fund: Citibank will be nationalized

   Feld Group: After the nationalization of Citibank, its stock price will fall by more than 60%.

  Messi Hedge Fund founder Milos Messi: If Citibank is nationalized, who's next turn?

  Wang Guanxi: "This Milus Messi founded a hedge fund in New York. This time, he should short Citibank with Soros, Feld and others."

   Wu Zhanhai: "BOSS, after we have closed the short position of Citibank this time, do we have to buy the bottom?"

  Wang Guanxi: “Of course we’re bargaining, and we’ll be bargaining when we close out this time!”

  Wu Hongsheng: "This time Milos Messi, Soros, and Feld short Citibank. We hope they don’t liquidate their positions when we are buying bottoms!"

  Li Guangyu: “I just don’t know if they are short-term or short-term short!”

  Wang Guanxi: "It should be short-term short, but it is very good for us to close the position."

   Then he ordered: "Let us release the prepared negative Citibank stock price news!"

  "Yes, BOSS" Then the Black Shirt Investment Bank released news that was bad for Citibank's stock price.

  ··

  At this moment, Manhattan, New York, Soros, Feld, and Milos Messi are sitting together drinking coffee.

Recently, Milos Messi made US$200 million on the Dow Jones Index, founded a Messi hedge fund on Wall Street, with a capital of US$300 million, and also received US$700 million in investment from several financial institutions, with assets of up to 10%. Million dollars, now is the time for him to flex his muscles.

  He found out that he had left the Messi family and Ohio. He seemed to have really found himself, and everything went smoothly.

  The glory of the Messi family will be reshaped by him.

  Milus Messi said with some concern: “This time, Wang Guanxi’s black shirt investment bank has also released bad news about Citibank. Will it affect our short selling?”

  Now his Messi hedge fund has assets of 1 billion U.S. dollars, of which 300 million U.S. dollars came from him.

  This time we all joined together to short Citibank, but Wang Guanxi came out to do something, and he was a little worried in his heart that it would affect their plan to short Citibank.

  Soros analyzed: "Wang Guanxi is a long-term short at Citibank. We are only short-term short this time. I guess Wang Guanxi is going to close the position today."

   Feld: "If Wang Guanxi closes a large position today, it will make the stock price rise a lot, which can just make us short at a high level. Should we increase our position and short today?"

  They borrowed a lot of stocks. Although they sold a lot before, there are still a lot of them left.

  Soros: "You can increase the position and short the position"

  Milus Messi also said: “If it rises, let’s increase the position, if it falls, we will wait and see”

   Feld: "When Citibank's stock price fell below the 20.00 position, how about we hit the market again?"

  Soros: "This proposal is good. Let's wait and see. After all, Wang Guanxi is also on the sidelines. He will not close the short list at 25 US dollars per share."

  Milus Messi nodded: “Yes, this Wang Guanxi must have liquidated the position when Citibank’s stock price fell below the 20.00 level, so we’ll just be short there.”

   Feld asked: "What if Wang Guanxi does not attach a short list at 20.00?"

  Soros: "Then I will drop the stock price"

  ·····

   Soon the US stock market opened.

  Citibank’s stock price fell by a small margin.

  Wells Fargo’s stock price rose.

  Bank of America's stock price rose.

  Twenty minutes passed, and Citibank’s stock price fell to $24.00 per share.

  Important news is here.

  【Agreement reached, the U.S. government will increase Citigroup holdings to 40%】

  Citibank said that it has reached an agreement with the US government that the US government will increase its holdings of Citigroup shares to 36%.

At the same time, the U.S. Department of the Treasury issued a statement stating that according to the shareholding increase plan, the Treasury Department will convert up to $25 billion of preferred stock into common stock, and stated that it will only proceed if the private shareholders also agree to the same terms This conversion will increase the government’s stake in Citigroup to a maximum of 36%.

  According to this agreement, the remaining US$20 billion of preferred stock held by the Ministry of Finance will be converted into more senior preferred stock, and its cash dividend rate will be 8%.

  In addition, as part of the agreement, Citigroup will suspend the payment of dividends on its common stock and preferred stock.

  Neither ordinary shares nor preferred shares have dividends. Why do you still hold this shaky Citibank stock?

  This stock price can be imagined.

  Citibank’s stock price began to plummet!

twenty three

twenty two

twenty one

  20

  19

  18

  ··

   fell from $24 per share to $14 per share in 15 minutes.

  At this moment, the Indian Industrial Trust and Investment Bank.

  Sandep Batra, Nehru, and Lajuslov had their complexions changed drastically.

   "This Citibank is really partially nationalized." Sundeep Bartra looked at the stock price chart of Citibank with angrily eyes. There was a big negative line in the 15-minute chart.

  In just 15 minutes, Citibank’s stock price fell 41.6%!

  This scared him inside.

  "Citibank has suffered the same as American International Group and Fannie Mae. The dividends of preferred stock and common stock have been cancelled, TM!"

  Citibank has 300 billion non-performing assets and has suffered serious losses. In the following years, it is estimated that there will be no dividends and the stock price will be sluggish.

  Even if Citibank makes a profit, the profit will first pay dividends to the senior preferred stocks of the US government.

   "Damn, the 12 million shares of our Indian Industrial Trust and Investment Bank lent to Wang Guanxi's little crap. If they don't close the position, I can't close the position!"

  Sandep Batra is angry, regretful!

  Currently, the Indian Industrial Trust and Investment Bank holds 12 million shares, with a floating loss of US$113 per share, for a total loss of US$1.356 billion.

  La Gushlow took off his big red glasses and sighed: “Citibank’s stock price plummeted, which also drove Wells Fargo and Bank of America’s stock price to fall”

  The Indian Overseas Bank holds 50 million shares of Wells Fargo Bank, with a position of 22 US dollars per share. Now the floating loss on the book is increasing.

  Nehru looked pale and sighed: “Now the stock price of Citibank has plummeted, which has driven the decline of Bank of America stock. I can’t even flatten Citibank’s stock now!

  Indian private pensions hold 10 million shares of Citibank and have already lent Wang Guanxi short.

  He wants to liquidate his position and must wait for Wang Guanxi to liquidate his position, and then return the 10 million shares to them before they can liquidate the position.

   "Wang Guanxi, this Chinese evil dog, will definitely not close the position"

  Indian private pensions hold 10 million shares, with a floating loss of US$82 per share, and a floating loss of US$820 million on the book.

   "Oh, I don't know where the share price of Citibank will fall in the future."

   "Last time I shouldn't have followed the Persian Gulf stock **** Alvad, he was a shameless pen, I still believed him at the time!"

  Sundep Batra echoed: "I was also fooled by Alvard's shameful pen!"

  ··

  At this moment, on the yacht, Alvard and Ratan Tata had just finished having fun with three women.

  Looking at Citibank’s stock price plummeting, Wells Fargo and Bank of America stocks also fell.

  The expressions of the two of them changed one after another, and they pushed the woman beside them away and put on the clothes on the bed.

  Ratan Tata was furious: "Now the share price of Citibank has plummeted, and the stock prices of Wells Fargo Bank and Bank of America have also turned plummeting, which is really hateful!"

  The Tata consortium also holds shares of 50 million Wells Fargo Bank, with a position of 23 US dollars per share, and the loss on the book is very miserable.

Alvard’s back was cold, and his face was pale and said: "Oh, this time is over. Citibank’s common stock and preferred stock have no dividends. The US government still holds so many senior preferred stocks, and it will take away Citibank’s common stock and preferred stock. In the bank’s profits, Citibank still has $300 billion in non-performing assets. In the future, Citibank’s stock price will be in a long-term downturn."

  He holds 150 million shares of Citibank, with a floating loss of 36 US dollars per share, and a book loss of up to 5.4 billion US dollars. The dividends he has received from investing in Citibank over the years are far more than the book losses.

   is simply annoying him.

   "This Wang Guanxi must have made a lot of money this time, **** it!"

  Speaking of this, Alvard was jealous.

  At this time, two reports came.

  [Citi's stock price plummeted, Persian Gulf stock gods invested huge losses]

  【Oriental crocodile crushes the Persian Gulf stock god, short Citibank makes a big profit! 】

  Alvard suddenly became furious and threw his violin to the ground.

  At this moment, Huntington Bank, in the trading room, Wang Guanxi watched that Citibank’s stock price did not continue to fall, and shouted: "Close the position!"

  "Yes, BOSS" the horses immediately began to liquidate their positions.

  1 million shares!

  2 million shares!

  3 million shares!

  ```

  Citibank’s stock price turned up.

  14.50

  14.91

  15.58

  16.51

  ··

  18.00 location!

  All 60 million short positions have been closed, which is equivalent to buying 60 million shares.

  The average closing position is around 16.00, earning 54 US dollars per share, 60 million shares, or 3.24 billion US dollars.

  The principal is the principal of 3.465 billion US dollars, plus the total profit of 6.705 billion US dollars.

  Before borrowed 60 million shares, which were valued at US$4.2 billion at the time, and the monthly interest was US$63 million. Now 50 days have passed, and a total of US$105 million in interest has been paid, leaving a total of US$6.6 billion.

  Before mortgaged 15% of the shares of Fujitsu Group, and the shares of the semiconductor company were Saudi Prince Alwad and Ratan Tata. Now, after the position is closed, the shares are returned to them.

  Instant Fujitsu Group, the semiconductor company’s equity mortgage agreement was also cancelled because of the return of the stock.

   Wu Zhanhai asked: "Boss, are we going to buy the bottom right now?"

  Wang Guanxi said indifferently: “Don’t worry for the time being. When Citibank’s stock price drops, we’re going to buy the bottom!”

  (End of this chapter)