US Treasury offloads Citi stock for $12 b

US Treasury offloads Citi stock for $12 b

WASHINGTON: The US Government said on Monday that it has sold off Citigroup Inc stock to recover $12 billion of the total $45-billion cash investment it made in the company to rescue it from a possible bankruptcy last year.

“By selling all the remaining Citigroup shares today, we had an opportunity to lock in substantial profit for the taxpayer and avoid future risk,” Mr Tim Massad, Acting Assistant Secretary for Financial Stability, said in a late night statement.

Citigroup is headed by Indian American Mr Vikram Pandit.

“With this transaction, we have advanced our goals of recovering TARP funds, protecting the taxpayer, and getting the Government out of the business of owning stakes in private companies,” he said.

During the financial crisis, the Treasury had invested a total of $45 billion in it and made a $5-billion commitment under the Asset Guarantee Program that was never funded.

The Department of the Treasury said it priced an underwritten public offering of approximately 2.4 billion shares of Citigroup Inc common stock at $4.35 per share.

With this offering, the Treasury has recovered all of the $45 billion plus approximately $12 billion in profits consisting of dividend, interest and gain on the sale of Citigroup common stock and other securities, read the official statement. — PTI