Citi (C) was speaking to government officials today about the US government taking between a 25 and 40% stake in the bank's common stock. Perhaps Nouriel Roubini's nationalization plan isn't so far-fetched after all. I wonder what Robert Rubin would think of all this.
As for the Bank of America spokesman saying that BofA will not be pursuing a similar strategy, time will tell. As someone whose job depends on the well-being of BofA (since their acquisition of Merrill Lynch), I'll be keeping a close eye on this story. Perhaps, I'll even wake up early tomorrow, just so I can watch the fireworks in the financial sector. Bank of America (BAC) stock could plummet precipitously on the open. Then again, this could be perceived as good news for the banking sector as a whole.
I'm off to bed. We'll see what happens when the market opens...
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