Sale of Citigroup shares nets $12 billion profit for US Treasury

Friday, 31 December 2010 11:48

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The US Treasury has sold its remaining stake in Citigroup, in a deal which it says will make a $12 billion profit on its overall investment.

Citigroup was one of the worst victims of the financial crisis, and the US government stepped in with $45 billion of bail-out cash in 2008 and 2009. The money was part of the $700 billion Troubled Asset Relief Program (TARP).

On Monday, the government sold off its remaining shares in the bank for $4.35 each…

The US government is in line for further earnings from Citi through the sale of warrants and preferred securities it holds.

In parallel to Citi paying off its debts, carmaker General Motors is likewise shedding itself of government control.

And the US Treasury is expected to begin selling off its stake in insurance giant AIG next year.

It is now estimated that the cost of the Troubled Asset Relief Program will cost the US taxpayer $25 billion, much less than earlier estimates.

Full Article: Sale of Citigroup shares nets $12 billion profit for US Treasury