Citigroups Other Shareholders Need Watching

Citigroup (C) apparently is now 36% controlled by Uncle Sam. Everyone is singing the blues but no one has an alternative. The interesting side tidbit is that Singapore and Prince al-Waleed bin Talal of Saudi Arabia, will also swap up to $27.5-billion worth of preferred shares for regular stock. This is roughly equal to Uncle Sam’s 36%. Therefore the marketplace only owns 28% of the equity. While everyone else is focused on what Uncle Sam will do, let’s start thinking about what deals Uncle Sam may have to cut with Singapore and the Saudi Prince. They do not always see the world through western-centric eyes.