×

Citi Out From Under?

In a bid to wriggle free from the government, on Monday Citigroup laid out a plan to repay the TARP Money.

That plan includes a $20 billion secondary, which will significantly dilute current shareholders' stake in the company. Citi only has to pay back $20 billion because the remaining $25 billion was converted into a 34 percent ownership stake in the bank earlier this year.

The government plans to sell that entire stake — which has risen in value by more than 20 percent — during the next year at a profit of $14 billion.

Citigroup has long been seen as one of the weakest of the large financial institutions to receive bailout money, and by approving the repayment, the government is saying Citi is on strong enough financial footing to stand on its own.

Considering a number of other banks remain under TARP, what’s the trade?

Still Under the TARP

What They Still Owe
WELLS FARGO $25B
PNC $7.5B
FIFTH THIRD $3.4B
KEYCORP $2.5B
SUNTRUST $4.9B
REGIONS FINANCIAL $3.5B
Source: FBR

At the end of the day, I expect to see a lot more write downs industry-wide, says Josh Rosner of Graham Fisher. Right now bank stocks are trading stocks and that’s all they are.


______________________________________________________
Got something to to say? Send us an e-mail at fastmoney-web@cnbc.com and your comment might be posted on the Rapid Recap. If you'd prefer to make a comment but not have it published on our website send those e-mails to fastmoney@cnbc.com.

Trader disclosure: On December 14th, 2009, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Pete Najarian Owns (AAPL) Calls; Pete Najarian Owns (DELL) Calls; Pete Najarian Owns (RIMM) Call Time Spread; Pete Najarian Owns (UUP) Call Spread; Pete Najarian Owns (CLF), Is Short (CLF) Calls

For Joe Terranova
Terranova Works For (VRTS)
Terranova Is Chief Market Strategist Of Virtus Investment Partners, Ltd.
Virtus Investment Partners Owns More Than 1% Of (CLB)
Virtus Investment Partners Owns More Than 1% Of (DLR)
Virtus Investment Partners Owns More Than 1% Of (EXR)
Virtus Investment Partners Owns More Than 1% Of (IGE)
Virtus Investment Partners Owns More Than 1% Of (XLY)
Virtus Investment Partners Owns More Than 1% Of (DBV)
Virtus Investment Partners Owns More Than 1% Of (UA)

For Jon Najarian
Jon Najarian Owns (PXP)
Jon Najarian Is Short (CHK) Calls
Jon Najarian Is Short (DVN) Calls

For Pip Coburn
Coburn Manages And Invests In Coburn Ventures Buckeye Delta Fund
Coburn Ventures Buckeye Delta Fund Owns (GOOG)
Coburn Ventures Buckeye Delta Fund Owns (AAPL)
Coburn Ventures Buckeye Delta Fund Owns (RIMM)
Coburn Ventures Buckeye Delta Fund Is Short (NOK)
Coburn Ventures Buckeye Delta Fund Is Short (PALM)
Coburn Ventures Buckeye Delta Fund Is Short (LEAP)
Coburn Ventures Buckeye Delta Fund Is Short (GRMN)
Coburn Ventures Buckeye Delta Fund Is Short (SNE)
Coburn Ventures Buckeye Delta Fund Is Short (CTCT)
Coburn Ventures Buckeye Delta Fund Owns (SY)
Coburn Ventures Buckeye Delta Fund Owns (STRA)
Coburn Ventures Buckeye Delta Fund Owns (CRM)
Coburn Ventures Buckeye Delta Fund Is Short (IPG)
Coburn Ventures Buckeye Delta Fund Is Short (NYT)
Coburn Ventures Buckeye Delta Fund Owns Accenture



CNBC.com with wires