FINWIRE®

Citigroup to Cut Dividend For Purchase of Washington Mutual?

March 31st, 2008

Investment banks have been hammered by the subprime crisis with delinquent home loans. Citigroup since 1998, decided to expand their banking business into the investment banking gladiator arena.

Citigroup is trying to get rid of the investment portion of the large global bank.

It would be in Citigroups best interest to cut the dividend completely and recapitalize for a large scale FED assisted purchase of Washington Mutual.

The FED may be involved in a deal to provide a lucrative deal with the Wells Fargo and National City in the days to come.

Citigroup has pull, being one of the largest banks in the United States, and Europe, the large player has the capability to organize and execute a take over bid for Washington Mutual within in the next month.

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