Re:Wall Street was the real winner of the GameStop saga
by WJW on Tuesday February 08, 2022 @05:00AM
(#30256638)
Do you imply that it was excessive short selling between 2006 and 2009 that lowered the price of Citigroup? It seems much more likely that the 2008 financial crisis had a lot to do with it and that Citigroup (which famously only escaped bankruptcy due to a government bailout) indeed lost 98.2% of its equity value.
So it wasn't the stock price falling that brought the company low, it was the company failing that brought the stock price low.
Re:Wall Street was the real winner of the GameStop saga
by NovemberWhiskey on Tuesday February 08, 2022 @07:49AM
(#30257774)
No; not suggesting this has to with excessive short selling. I’m just supplying a data point to support the point that a large decrease in stock price needn’t have a material affect on the ability of a firm to operate.
C was $564.10 at the end of 2006. By early 2009 it was $10.20 - that's about a 98.2% reduction in the stock price. That's a much larger destruction of capital than GME ever was.