Bank of America (BAC) and Citigroup (C) are both repaying their TARP funds so they can reward their executives with huge salaries and bonuses. Citigroup made a huge offering this week to sell over $30 billion dollars of common stock. Bank of America already paid off its $45 billion TARP funds with a $19.3 billion equity offering recently. Both stocks trade at lows that we won’t see for a long time. Citigroup went as low as $3.20 recently this week and Bank of America reached a low it set in July at $15. These prices are valid bargains and with the amount of money the FED is creating you can bet these stocks will go up as inflation-protected stocks. They also will continue to make more revenue as they release more loans out which the government is encouraging to help create more businesses and jobs.
1 Pingback