Still in the shadow of the government’s total $45bn capital injections and following news the institution needs another $5.5bn to withstand more severe economic conditions, Citigroup (C) will be delisted from the Dow Jones Industrial Average. Dow Jonestoday said The Travelers Companies (TRV) is replacing Citigroup on the Dow Jones Industrial Average as of June 8. Travelers, which spun off Citigroup in 2002, provides property and casualty insurance. “We were reluctant to remove Citigroup at the height of the financial frenzy, but it is clear that the bank is in the midst of a substantial restructuring which will see the government with a large and ongoing stake,” Dow Jones editor-in-chief Robert Thomson says in a media statement today. “We genuinely hope that once the bank has refashioned itself that we will again be able to consider it for inclusion – Citigroup is a renowned institution, not only in this country, but around the world,” he adds. Additionally, Cisco Systems (CSCO) will replace General Motors (GM) as of June 8, a result of the automaker’s bankruptcy filing this morning. Citi stocks traded at $3.72 and GM traded at $0.92 in mid-morning trading as this story went to press. Travelers, on the other hand, traded at $42.37 and Cisco traded at $19.42 around the same time. Write to Diana Golobay. Disclosure: The author held no relevant investment positions when this story was published. Indirect holdings may exist via mutual fund investments.
Diana Golobay was a reporter with HousingWire through mid-2010, providing wide-ranging coverage of the U.S. financial crisis. She has since moved onto other roles as a writer and editor.see full bio
Most Popular Articles
Latest Articles
Test
The story for the housing market over the past three years has been, “Home sales are down, home prices are up.” Because inventory was so restricted after the pandemic, prices pushed higher even as demand weakened. That story may finally be inverting as unsold inventory of homes is now great enough that home prices are […]
-
Freddie Mac’s Donna Spencer on their Servicing Excellence initiative
-
Lower mortgage rates attracting more homebuyers
-
Rocket Pro TPO raises conforming loan limit to $802,650 ahead of FHFA’s decision
-
Show up, don’t show off: Laura O’Connor is redefining success in real estate
-
Between the lines: Understanding the nuances of the NAR settlement
Diana Golobay was a reporter with HousingWire through mid-2010, providing wide-ranging coverage of the U.S. financial crisis. She has since moved onto other roles as a writer and editor.see full bio