Make Starbucks What It Sounds Like: a Bank

(NEWSER) - A sign of the times: Citibank shares are now eligible for your local dollar store. The bank’s shares fell below $1 for the first time ever today in trading, MarketWatch reports. They reached 97¢ at midday, about 2 years after trading at an all-time high of $57. Investors apparently have little faith that Citi, which has received $45 billion in government aid, can rebound. More»

As red ink continues to flow, more experts say some nationalization is likely

(NEWSER) - With US banks likely to need as much as $2 trillion in capital in coming months, more experts are seeing semi-nationalization as a distinct possibility, writes Reuters reporter Dan Wilchins. The government already is using its $700 billion bailout to put pressure on banks. The Obama administration is on record as saying that it will push banks seeking federal funds for more concessions, specifically limiting dividends and executive pay. More»

Rivals may take risks, expecting taxpayer protection

(NEWSER) - The Citigroup rescue bolstered confidence in the financial sector in the short term, but in the long term it could spell more trouble for taxpayers and other struggling banks, writes Eric Dash in the New York Times. Other banks will see the bailout as a template for future ones—giving them a backstop for risky plays and even a way to gain a competitive advantage. It's only a matter of time before they begin lining up, Dash writes. More»

(NEWSER) - Citigroup said today it's going to let Wells Fargo go ahead with its acquisition of Wachovia, the Wall Street Journal reports. But all's not chummy in the banking world: Citigroup, which charges that Wachovia illegally backed out of a deal to accept a sweeter offer from Wells Fargo, is still going to sue for billions in damages. More»

More bad news today drives market down again

(NEWSER) - These are nervous times in Europe. Shares in Bankia, a Spanish bank partly nationalized by the government last week , plunged 30% at one point yesterday following reports that customers had withdrawn more than $1.3 billion over the last week, reports Reuters . Bankia shares recovered some ground after the government and the bank denied that there had been unusual deposit activity, but stocks still closed down 14%. More»