Citi stocks decline after reverse split of shares
Citigroup Inc shares fell 1.8% to $44.39 on Monday morning after the company's 1-for-10 reverse stock split.Updated: May 09, 2011 21:23 IST
Citigroup Inc shares fell 1.8% to $44.39 on Monday morning after the company's 1-for-10 reverse stock split.
The third-largest US bank by assets, which needed $45 billion in US government bailouts to survive the financial crisis, shrank its number of shares outstanding to about 2.9 billion with the move.
The split boosted Citigroup’s share price out of the single-digit range in which it has languished since the financial crisis. The shares are trading in the mid-$40s for the first time since October 2007, when the bank started to recognise billions of dollars of losses on bad loans.
Citigroup shares fell on the day in March when the bank announced its reverse split, and industry observers had forecast they would fall again on Monday.