Citigroup stake sale nets $1bn profit for Treasury

1 October 2010

Citigroup stake sale nets $1bn profit for Treasury
The US Treasury has made a profit of just over $1 billion from its sale of a five per cent stake in Citigroup.

Since July 26th, the Treasury has got rid of 1.5 billion shares in the financial institution, netting $5.9 billion in the process.

It paid $3.25 per share when it took on a stake in Citigroup at the height of the financial crisis, but the recent sales have taken place at an average of $3.93 per share, reports Bloomberg.

The Treasury's stake in Citigroup now stands at around 12 per cent and is worth about $14 billion.

However, plans to divest itself of the shares by the turn of the year are behind schedule, with the Treasury only managing to sell around 31 million shares per day, less than half of its target.

Earlier this week, AIG announced its plans to repay the Treasury in full for the bailout funding it received as a result of the financial crisis.

By Gary Cooper

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