For Real Estate Professionals Seeking a Market Edge
U.S. Treasury to Begin Selling Shares of Citigroup
The U.S. Treasury Department announced that they will begin divestiture of shares held in Citigroup Inc., anticipating a net profit of $7.5 billion. During the 2008 credit crisis, the Federal government purchased 7.7 billion shares of Citigroup for $25 billion. The Treasury indicated that it intends to sell a portion of the shares during 2010, depending upon market conditions. Should Citi share prices tumble, the Government will retreat from their dissolution schedule and continue to hold out for a stronger market price. In recent months, Citi's share price has been rising in lock-step with the overall equities market, affording the Treasury this potential profit-taking opportunity.
For months, government officials have been seeking an exit and an opportunity to divest of positions in those U.S. banks funded under the $700 billion Troubled Asset Relief Program, or TARP, during the height of the financial crisis. Citi, one of the hardest hit banks during the credit crisis, made headlines as one of the largest institutions rescued by a staggering $45 billion in bailout funds. Of that amount, $25 billion was converted to the government's ownership stake in the bank at $3.25 per share.
We will keep you posted…
Hot Money
Line of Credit for Purchasers of Foreclosed Single Family Residences
Penstar recently identified a capital provider offering lines of credit for volume buyers of foreclosed single family properties located in Southern California. Credit Lines will range from $1 million to $7 million priced at Prime plus 200 basis points; floored at 7.0%. The lines will be renewed on an annual basis for a 1.75% lender origination fee. Advances will be the lesser of 80% of total cost including rehabilitation, or 65% of value upon project completion. For more information, please contact Steven Hamermesh at (818) 883-9609 or Hamer@PenstarAdvisors.com.
Helpful Humor
The best antidote for those challenging transactions is to take a moment to have a hearty laugh. Helpful humor is our way of infusing laughter into your work-week
“Cooking Bachelors”
As two bachelors sat talking, their conversation drifted from politics to cooking. “I bought a cookbook once,” admitted the first man, “but I couldn't get comfortable using it.” |
30
Day Libor |
10-Year
Treasury |
Prime |
0.25% |
3.83% |
3.25% |
Penstar Realty Advisors can be reached at (818) 883-9600.
Our offices located at:
21700 Oxnard Street, Suite 1870, Woodland Hills, CA 91367