According to reports, the Treasuryâs 7.7 billion shares in the investment bank were worth $32.2 billion at the close of trading yesterday (March 29th).
If the government had sold the stake at these prices, then it would have made a profit of over $7 billion on its investment.
The sale of the 27 per cent stake would complete the repayment of the $45 billion the institution used as part of the Troubled Asset Relief Program during the financial crisis to stay afloat.
Tim Geithner, Treasury secretary,âtoldâCNBC that the sale of the stock is an indication of how far the US economy and markets have recovered.
âThisâisâjust the next stage of us moving to make sure weâre getting out of the financial system as quickly as we can because we donât want to be in the business of owning a share in a private company a day longer than necessary.â
Investment bank Morgan Stanley has been employed by the US government to manage the sale of its stock.
By Jim Ottewill