Nouveau Finance

Monday, February 23rd, 2009
2151 hrs

My brother send me these numbers for Citigroup :

Shares Outstanding : 5.45b
Price : $2.14
Market Cap : $11.66b

Now...if the US government buys a 40% stake (bandied
about today!) :

Theoretical New Market Cap : $19.44b
Market Cap that is now owned by Govt : $7.78b
Thus, US government gets this fraction for their $45b : 0.17

Umm....the US government buys at this price : $12.39
Ummm...and the stock is trading at $2.14
Ummmmm....and you, dear taxpayer, just gifted away $79.66 b.

Bid you farewell with that pure singular primordial numerical thought.

Goodnight!

- vo/aLV