Investing Warning: Financial Sector Problems are Just Beginning

The big news right now is that Citigroup has agreed to sell a stake to the Abu Dhabi Investment Authority. This is having the current effect that Citigroup’s stock, which was in the toilet yesterday, is getting quite a boost. And it’s bringing back the rest of the stock market as the “interpretation” of the move is seen as positive for the financial sector. Reuters reports on the implications of the Citigroup deal:
Investors interpreted Citi’s move as a sign that financial institutions were repairing the damage from a meltdown in the U.S. subprime mortgage market and the resulting credit …read more