Dow Jones Removes Citi, GM
Still in the shadow of the government's total $45bn capital injections and following news the institution needs another $5.5bn to withstand more severe economic conditions, Citigroup (C) will be delisted from the Dow Jones Industrial Average. Dow Jonestoday said The Travelers Companies (TRV) is replacing Citigroup on the Dow Jones Industrial Average as of June 8. Travelers, which spun off Citigroup in 2002, provides property and casualty insurance. "We were reluctant to remove Citigroup at the height of the financial frenzy, but it is clear that the bank is in the midst of a substantial restructuring which will see the government with a large and ongoing stake," Dow Jones editor-in-chief Robert Thomson says in a media statement today. "We genuinely hope that once the bank has refashioned itself that we will again be able to consider it for inclusion – Citigroup is a renowned institution, not only in this country, but around the world," he adds. Additionally, Cisco Systems (CSCO) will replace General Motors (GM) as of June 8, a result of the automaker's bankruptcy filing this morning. Citi stocks traded at $3.72 and GM traded at $0.92 in mid-morning trading as this story went to press. Travelers, on the other hand, traded at $42.37 and Cisco traded at $19.42 around the same time. Write to Diana Golobay. Disclosure: The author held no relevant investment positions when this story was published. Indirect holdings may exist via mutual fund investments.