Citibank has now joined the ranks of the penny stocks. In 2006 the stock was trading at $55.70 and the company had a market capitalization of $277.2 billion. Today, the stock is trading at under $1 per share and the market cap is $5 billion. However, the US government has already lent the company $45 billion, so the actual value of the company is probably far less (i.e. negative).
Bank of America isn’t doing much better.
On the auto front, auditors for GM are debating whether to continue to portray the carmaker as a “going concern.” This determination will factor heavily in the company’s ability to access more loans from the government or whether it will be headed straight for bankruptcy. GM stock is trading just below a lofty $2 mark.