John Bougearel
Turns out according to soures with knowledge of the situation that Citigroup employees can sell their 2009 bonus shares in April 2009, “providing shareholders approve the scheme.” The bonus shares in effect are almost as liquid as cash bonuses, given the lockup period is only three months long. So, the govt has approximately 40 billion shares to sell on the open market beginning in Q2 2010, and now employee bonuses are going to add possibly several billion (exact amount unknown, this is a guesstimate) more shares to the supply pool that will need to be sold to the unsuspecting public.
Citigroup should be trading below $3 in Q2 2010 and beyond until the govt and employee supply has been fully absorbed. .
http://www.zerohedge.com/article/so-much-whole-stock-bonus-theater-citigroup-employees-can-sell-their-bonus-shares-open-marke
