What Happened When Alex Kenjeev Paid His Student Loan in Cash
America's 10 Highest-Paid CEOs of 2011 (and How They Earned It)
It has become popular in the last year to blame common shareholders for the poor judgment of the executives who are supposed to boost corporate profits. The blame rests with the board of directors whose legal responsibility is to represent the interests of common shareholders and to take action if management is not acting in their best interests.
Now, after denying that it plans to nationalize banks, the U.S. is reportedly in discussions with Citigroup (NYSE: C) to convert its $45 billion in preferred shares -- which represents a 7.8% share -- into a 40% stake in Citi common. In the process of making this conversion, Citi will issue new common shares which will further dilute Citi shareholders. Why is this happening? Because over the next few weeks, the U.S. is going to apply stress tests, which calculate the effect of a crushing recession on the balance sheets of the top 20 banks.
Goldman Earnings Sink After Buffett Dividend
Johnson & Johnson's Income Falls 23%
Burberry Shares Leap on Sales Update
