Citigroup Announces $3 Billion Redemption of Trust Preferred Securities
Here is the link that makes a total of 4.2 billion that the FEDs approved for citi to buy back.
WOW this will moves us over $60/share very soon.
Maybe you miss the point.
These preffereds pay over 7% interest. C will buy them with, in effect, money from the Fed or from depositors at 0.1% cost. Effect to earnings will be huge. The math is easy: boost to earnings is 7% of $3B = 200M$/year. With a P/E of 10, that's $2B increase to market cap. With P/E of 20 it is $4B increase to market cap. The whole B.S. about "passing stress test" is the "cover" they (Fed and C) need to justify this. Bottom line, they want to push C stock back up.