Friday, April 17, 2009
Citi Trade, Missouri Bank Closed, West Va. Bank Cuts Ties To Feds
"Citi Trade Profitable But Now Tough To Execute"
A popular trade involving Citigroup shares could yield fat profits after the bank said on Friday it is not changing terms of a preferred share exchange, but new investors could struggle to get a piece of the action. The trade involves buying Citi preferred stock and simultaneously selling borrowed shares of common stock (C.N), known as short-selling. The preferred shares can be converted into common stock in a few weeks, meaning they can effectively be used to buy Citigroup shares at a much lower price than the level at which they can be sold now, potentially yielding a 200 percent profit....Complete Story
"Regulators Close Bank In Missouri, 24th This Year"
Regulators on Friday shut down American Sterling Bank in Missouri, marking the 24th failure this year of a federally insured bank. The Federal Deposit Insurance Corp. was appointed receiver of the bank, based in Sugar Creek, Mo. It had $181 million in assets and $171.9 million in deposits as of March 20. Metcalf Bank, based in Lee's Summit, Mo., was chosen to assume American Sterling's deposits and buy about $173.6 million of its assets. The FDIC will retain the rest of the assets to sell later. The Missouri offices of American Sterling will reopen on Saturday. Those in California and Arizona will open on Monday....Complete Story
"West Virginia Bank Becomes First To Cut All Bailout Ties"
A West Virginia bank has become the first to completely cut its ties to the federal government's $700 billion financial rescue program. The Treasury Department said Friday that Centra Financial Holdings Inc. of Morgantown, W.Va., has given the government $750,000 to buy back warrants Treasury was holding that gave it an ownership share in the company. That transaction means Centra Financial has now paid the full costs of participating in the financial rescue program. On March 31 the bank returned the $15 million in capital infusions the government had provided.
Centra Financial was....Complete Story