Real Property

experts have long been required to exclude from the index of leading U.S. shares thirty largest companies are in distress due to financial crisis concerns. Are now experiencing difficult times Corp Citigroup has been in the «firing» list. After the fall of stock prices below the $ 1 had been threatened not only their stock quotes, but also in the Dow Jones Index.

In contrast, the German index DAX, admission and exclusion from the list, first calculated in 1896, traditional U.S. Dow index Jones Industrial Average (Dow) are produced without the use of a specially approved rules. List of Dow argues for his taste led by the chief editor of Wall Street Journal authority, which is held without a strict timetable. Following its last meeting, the participants made it clear that the financial crisis will inevitably impact on the composition of Dow.

As a result of failures in the real estate market Citigroup has suffered huge losses and in 2008 was forced to make billions of dollars of write-offs. Since the fall of 2008 she received public assistance in the amount of $ 45 billion cost of the same banking group, which a few years ago was a model, in particular, and for Deutsche Bank, on Thursday was just slightly less than 5.5 billion U.S.

Big doubts and constant speculation about the sustainability of Citigroup, on Thursday led to what course the company's shares fell occasionally below the $ 1, namely, the border is on Wall Street to the point of being seriously below which securities exchange is not included . In professional jargon they are called here penny-stock, ie shares-gambler as a kind of pariah in decent society. As a result of pressure on the organizers in order to remove the valuable paper Citigroup from Dow Jones Industrial Average rose. «We are constantly monitoring the situation at Citi, and will continue to do so», – said the official representative of Dow Jones.

Togo, who for too long, quoted below $ 1, with the New York Stock Exchange just expelled. Until now, there were such a rule: those groups whose actions during the more than 30 consecutive days were worth less than $ 1, receive a period of six months to prove that rise above this point they did reach. Otherwise, they bid was withdrawn. Due to the fact that because of the crisis to the penny-stock shares fell a lot, the New York Stock Exchange (NYSE) intends to soften its rules: its official spokesman said recently that the probationary period will be extended.

With regard to membership in the club Dow, Citigroup situation here may be even more sensitive. The point is that experts have long been required to remove from the list of thirty members of the Dow Jones companies and Citigroup, and those affected by the financial crisis, companies like General Motors, arguing that they undermine the credibility of the index, which is to to represent the U.S. economy.

Rolf BENDERS (TRANSLATION OF ALEXANDER Polatsk)