Saturday, February 28, 2009
The latest move on Citibank saw Singapore wealth fund GIC converts notes at $3.25/share which would rise GIC's stake in Citi to estimated 11.1 percent. A convertible shares in this case is one that can be converted from preference shares to ordinary shares. These means that should Citibank eventually winds up, GIC's ordinary shares will be the last in line to get its capital that he put in back. Furthermore, when the bank makes profit, GIC will be the last to takes it share. This is a risky move from GIC. Should everything fails and Citibank goes under and files for bankruptcy, GIC may lose all its investments.
what we could have been, 11:19 PM.
