See What People Are Saying About... Citigroup's Third Bailout


Bank stocks fell at the open on Friday, following news the U.S. government would be taking a large common equity stake in Citigroup

The bailout bid is the third for Citigroup in the past five months, and will dramatically dilute existing stockholders stakes to as low as 26 percent. The government will convert up to $25 billion in preferred shares for common stock.

CNBC's Steve Liesman explains that the government is getting deeper into Citi to ultimately get out. He says the feds are taking a larger stake to stabilize the banking system in order to instill confidence in banks. Only then can banks attract private capital.

The move will give the government far greater influence on Citigroup's operations. "The government is the new boss," says Mike Holland, the founder of money manager Holland & Co in New York. "Every major decision is something that is not going to come out of Park Avenue, but is going to come from Washington D.C."

These events again suggest that as far as the feds are concerned some banks may be just too big to fail. And that leads to our Fast Money Reader Poll. Should the government prop up Citigroup at all costs?

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