Citi took out a loan that pays 11% coupons today. When an investment grade company has to take out a loan/capital infusion at junk rate, you know the credit market is in trouble. Especially when we are talking about a financial service company, which expertise is in managing interest spread and capital.
Sorry for all the Citi's shareholders and soon to be lay-off employees. I feel your pain.
However, the former CEO of Citi won't be feeling the pain with a severance package that is worth $40 mil. Good job, Chief Value Destroyer Chuck Prince.
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