Many bailed out US firms see steep stock mkt losses

Billions of dollars of taxpayers' money may have bolstered Wall Street giants in fighting the financial turmoil but stocks of many such entities like Citigroup have plunged 75 per cent in just one year.

According to an analysis of share prices of major American entities who have received government funds by business magazine Fortune, have seen their stocks plummeting as much as 90 per cent from August 29, 2008 to Sep 4, 2009.

Out of the 12 firms selected by the magazine, only industrial conglomerate General Electric did not receive any money from the US.

Apart from Citigroup and General Electric, others are AIG, Fannie Mae, Freddie Mac, Bank of America, CIT, American Express, Morgan Stanley, Wells Fargo, Goldman Sachs and JPMorgan Chase.

As per the report, India-origin Vikram Pandit-led Citi's shares have slumped 75 per cent and the firm has received $45 billion worth taxpayers money.

"Citigroup has taken its share of lumps over the past year. Three government rescues, a break up of the firm's operations and even nationalisation fears took the stock below $1 at one point.

"But with Citi rallying this summer, some may be betting that things can only get better," the report said.

Battered insurer AIG's shares shed a staggering 90 per cent and little over $116 billion has been pumped into the company by the US. Another major loser was financial services entity CIT whose shares nosedived 85 per cent. However, JPMorgan Chase has gained in the stock market during that period with shares shooting up 9 per cent.

Mortgage lenders Fannie Mae and Freddie Mac saw their stocks slide 76 per cent and 59 per cent, respectively. Both companies together have been given nearly $100 billion in government funds.

General Electric's scrip has decreased 52 per cent. Shares of Bank of America fell 46 per cent while that of Morgan Stanley and American Express dropped 32 per cent and 18 per cent, respectively.

The scrip of Wells Fargo declined 11 per cent, while that of Goldman Sachs fell just 1 per cent.

The US is grappling with one of the worst financial crisis in nearly 80 years and the government has come out with unprecedented measures including massive stimulus packages to bolster the nation's sagging economy.