Rate Watch 2-27-2009

Cautiously Floating,
Gross Domestic Product for the 4th quarter came in worse than expectations and at its lowest reading since 1982. Also today, the Treasury Department announced plans to take a 36% stake in Citigroup by converting $25 Billion of preferred shares into common stock. The move will dramatically dilute shareholder value, but should help bolster the struggling bank's capital base.