reducing shares from 29 b to 2.9 billion is huge. The low price, from the economic melt down, and bank crisis in general created a disaster for c along with the other banks. They were paying a .54 dividend on about maybe 20 billion shares. Doubt they are paying .54 anytime soon, but with only 2.9 billion shares instead of 20 billion it will be a lot sooner than later. I think the government owned around 10 billion shares. It may have been more. No div was paid on the extra government shares.
This move also gets citi out from the programmed trading desks that move in and out for 1/2 a cent. If it drops at all or a lot week of post split I will buy more.
The additional government shares were the issue. The stock might have gotten back on track without that added dilution. The funds, and day traders have kept the stock penned in. Many many funds have this multi billion share co, computerized. It basically cannot move. It can trade for hours at a 1/2 penny a pop. This all ends shortly. This has been the biggest cash cow the market has ever seen. At the expense of the traditional hold for the long term investor. Put this in the archives, I believe c ends up over 100 with a divi of about 1.25 q in about 3 years. If they do a split going forward, then I will bail figuring they did not learn their lesson.
The real issue right now with banks is no jobs. That screws real estate which in turn screws the banks out of lending mortgages and increases foreclosures. I believe 3 years out those that do not take a position now, or after split will kick themselves in the backside. The economy will recover so will real estate, c will be banging the highest divi of any bank out there.