Yeah, it's bad. They're screwing existing shareholder in order to keep paying the dividend and have extra cash needed to shore up the balance sheet. It's definitely bad and suggests Citi hasn't yet turned the corner on losses.
The shame is that the dividend won't get cut. Rather they'd pay up to bring in more capital with one hand and give it away with the other.
I've been saying all along that the most responsible thing Panda could have done was cut the dividend given it is the cheapest form of capital he could get his hands on. Yet, he chose to play smoke and mirrors.
Further adding to the deception, although not going as far as saying they wouldn't raise more capital when questioned on the conference call, but they sure as he11 tried their best to lead the listner to reach that conclusion.
I always said I'm not buying until this POS hits $18. I've now lowered my target.
good commentary, and you know what, they will not cut the dividend now, they will wait until it is the last thing they have left. C is insolvent, and when they are trading under 10 with double the float, they will finally cut the dividend before they finally go tits up.