Should Citigroup (C) be nationalized?

Should the government put Citigroup (C) out of its misery and just nationalize the massive money center bank?

Calls to nationalize are growing as lifelines fall short and the bank drags down the rest of the market Citi has been in crisis mode for a while. On top of $44 billion from private investors, Treasury injected $45 billion more. Regulators agreed to eat the majority of losses on $306 billion of assets. Then on Jan. 13, the bank ceded control of its brokerage Smith Barney and alluded to a bigger breakup. Nothing seems to be working at Citi, whose woes have helped drag down the entire stock market this year. Since the government's first infusion of capital in October, shares of Citi have fallen by 76%, to 4.53, vs. 43% for the banking index. With faith eroding fast, a growing number of economists, analysts, and investors thinks the government needs to take more drastic action and seize the bank. "[Citigroup] may have to be nationalized," says Anil Kashyap, an economics professor at the University of Chicago and a former economist at the Federal Reserve. Says analyst David Hendler of CreditSights: "Until Citi is put on steady ground, they hurt everybody in the marketplace." Citi declined to comment before its earnings announcement on Jan. 16. Citi: Time for Heroic Measures? - BusinessWeek

Pandit did not cause any of this but is silly enough to think he can fix it. Citi is a mess and no one really knows how bad the financial sector is especially the geniuses that work on Wall Street.

Will preferred Shares survive if C is nationalized by Government?

Will they be worth anything? What's the symbol? The common shares will be wiped out ($0.00). I would buy the preferred in 3 months once the market bottoms.

The days of the independent bank are numbered. All the big US banks will be nationalized by year end!!