On paper the bank may be healthier, but the initial reaction from investors is that the partionally-nationalized Citigroup isn’t worth owning. In pre-market, the stock is off about 30% 50% to around $1.25. That’s just a couple pennies off the lows of the low at $1.61.
Maybe it’s because Citi investors have seen what quasi-nationalization in the form of AIG actually looks like. Sure, AIG keeps getting “bailed out” but it hasn’t helped investors at all. Or maybe it’s just that after all this Citi’s balance sheet still looks sickly.
The rest of the sector is getting slammed, too. Bank of America is down about 15%.