U.S. Ends Citigroup Investment With $10.5 Billion Stake Sale By Bradley Keoun and Donal Griffin - Dec 7, 2010 3:48 AM ET
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The sale helps Citigroup, recipient of a $45 billion taxpayer-funded bailout in 2008, exit the rescue, which was provided to keep the New York-based bank from collapsing as its stock sank below $5 and some depositors started withdrawing their money. Photographer: Jonathan Fickies/Bloomberg
The U.S. Treasury Department sold its remaining stock in Citigroup Inc. for $10.5 billion, bringing the country’s third-biggest bank a step closer to independence from the government following a $45 billion bailout in 2008.
The Treasury said it disposed of 2.4 billion shares at $4.35 each, compared with yesterday’s closing price of $4.45 on the New York Stock Exchange. The sale raises the profit for taxpayers on the government’s stake to about $6.85 billion.
The sale helps Citigroup exit the 2008 bailout, which was provided to keep the New York-based bank from collapsing as its stock sank below $5 and some depositors started withdrawing their money. Citigroup also had to get $301 billion of government guarantees on its riskiest assets, making the bailout the biggest among U.S. banks.
IF I WOULD TAKE A RISK & PAY $4.35 FOR 10.5 BILLIONS SHARES I WOULD MAKE SURE AFTER SPENDING THIS KIND OF MONEY THAT MY INVESTMENT IT'S SAFE....
By selling all the remaining Citigroup shares today, we had an opportunity to lock in substantial profits for the taxpayer and avoid future risk," said Tim Massad, the Treasury official who heads up the bailout program.