U.S. stock futures pointed to a strong start Monday morning as reports the U.S. government could increase its stake in Citigroup and After NABE released a survey projecting a modest pickup in the second half of 2009, followed by a solid recovery in 2010. Before the bell: Stocks to start higher on Citi news, economic report
Citigroup (C) -- The Wall Street Journal and The New York Times reported the bank is negotiating with government officials to have the U.S. to boost its stake to as much as 40 percent by converting its preferred shares into common shares. It seems the government would rather hold closer to 25 percent though. C shares jumped over 6% in pre-market trade. C shares are trading about 7% higher an hour after the open.
Bank of America (BAC), on the heel of the Citi news, was also stronger. CEO Lewis wrote a memo to employees the past weekend, saying that the bank doesn't need anymore assistance now, or in the future. BAC shares soared over 6.5% in pre-market trade. BAC shares are trading 9.5% higher an hour into the open.