Citigroup has announced that it would be selling shares amounting to 3 billion dollars or 1.5 billion pounds. The main aim behind this move is to improve its present monetary position. The announcement came after the closure of the financial markets in the US, when there was 46% betterment in the prices of the stocks of Citigroup recently. The prices increased from the 17th March mark of $18 that was the lowest since 52 weeks.
This move has followed the issuing of preferred shares by the Citigroup. These shares were worth 6 billion dollars. Since the later phases of the last year, Citigroup has generated 36 billion dollars. This money has been collected in order to cover for the losses it has suffered.
Citigroup also aims at paying off its various obligations as well as write down a number of sub prime mortgages. In the six months leading up to March, the losses made by Citigroup have amounted to a bit less than 15 billion dollars. In the context of write downs, Citigroup is preceded only by UBS.
The value of the shares of Citigroup has fallen by almost 3% in the transactions of the after-hour trades. As per financial experts like William Smith who is the chief executive at the New York-based Smith Asset Management, one of the major aspects of the present day financial markets is the continuous stream of investors who are never fazed by the bad performance of the leading companies.
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