Today was a bad day for Citi preferred stockholders...or was it?
Citi to Exchange Preferred Securities for Common, Increasing Tangible Common Equity to as Much as $81 Billion
"In connection with the transactions, Citi will suspend dividends on its preferred shares. As a result, the common stock dividend also will be suspended. The company will continue to pay the distribution on its Trust Preferred Securities and Enhanced Trust Preferred Securities at the current rates."
I've been scanning articles for the last hour. I can honestly say I'm more confused than when I started, at least about prospects for the larger group of bank preferreds. (Most took a modest haircut today.)
Today Citi had several preferred share classes trading with volumes in the 10's of millions, so the speculators and arbitrageurs were having some fun.
Investing in (big?) bank securities of any kind is becoming more speculative by the day...