Citi: mandatory converts

Citigroup, Morgan Stanley and UBS have announced investments from Asian and Middle Eastern sovereign wealth fund investors. Merrill Lynch could be next. Aside from any political controversy, the deals have attracted criticism as being giveaways by the banks. How good a deal are the SWFs really getting for bailing out Wall Street? That critically depends on whether the banks they are investing in cut their dividends. Assuming they won’t, beyond what UBS has already announced, the Arabs and Asian...