Freddie cuts their dividend in half to .25, and is raising $6 billion in a preferred at a rate of 8.25%. The stock bottoms on this news. So buy CIT Group (CIT 24.47). What's that logic?
Citigroup paid 11% for $7.5 billion of cash, Freddie's paying 8.25% for $6 billion while CIT raised $2 billion today, at a rate of 7.875%. If CIT pays a lower rate, than C or government sponsored Freddie, then, the thinking goes, bond buyers probably know more than stock "players" who want stock investors to believe that CIT is in worse shape than it is.
CIT was up $4.62 on Friday, and was down $4.72 on Monday. Today it was up .73 cents. By the end of this week, you should be able to make a quick 11% on CIT.