Citigroup (C Quote) on Thursday completed the first half of its much-discussed exchange offer that will make the U.S. government its largest stakeholder.
The New York-based financial institution, which has received $45 billion from the Troubled Asset Relief Program last year, said that private preferred holders of roughly $12.5 billion worth of convertible preferred securities were exchanged for interim securities and warrants on Thursday.
The U.S. government, which agreed to exchange up to $25 billion worth of preferred securities, completed half of that on Thursday by exchanging $12.5 billion of non-convertible preferred securities for interim securities and warrants. It will also exchange its remaining preferred securities into trust preferred securities bearing an annual coupon of 8%, the company said. Once completed, the government will own approximately 34% of the troubled financial institution.
NEW YORK (MarketWatch) — U.S. stocks ended sharply higher on Thursday, as more upbeat earnings and housing data helped the broad market reach new highs for the year and led the Dow Jones Industrial Average to a close above 9,000 for the first time since January.
Pinnacle Bank of Oregon was a financial institution serving the portland area. The bank is going down in Oregon’s history books as the first bank to fail in the last 17 years. Pinnacle was a tiny bank with only $73 million in total assets and $64 million in deposits. The 8-year-old institution’s sole office at 8800 S.W. Nimbus Ave. in Beaverton is now a branch of Washington Trust Bank of Spokane.
Washington Trust bought the Pinnacle assets for $66.4 million and agreed to assume all deposits of Pinnacle. It also entered into a loss-sharing agreement with the Federal Deposit Insurance Corp. that limits the bank’s potential losses on the loans it is acquiring, said FDIC spokesman David Barr.
I have been watching this stock for quite some time now. For a while, this stock was at a dead standstill with little to no activity. This spike is a result of the 2 week company forecast that was released on July 17.