According to Bloomberg, Bank of America Corp, JPMorgan and Wells Fargo & Co are the other financial institutions which will receive the majority of the fee.
However, up to 50 firms are thought to be involved in the sale, which is expected to generate a $2.2 billion profit for the authorities.
The sale of the trust preferred securities, which were received by the government in return for its $45 billion bailout of the bank while running the Troubled Asset Relief Program (TARP), was expected to close yesterday (October 5th).
Since July 26th, the US Treasury has sold 1.5 billion Citigroup shares for a total of $5.9 billion - the equivalent of $3.93 per share and higher than the $3.25 the taxpayer paid as part of TARP.
The US Treasury now owns an estimated 3.6 billion shares in Citigroup common stock.
This figure represents 12.4 per cent of outstanding common stock and is worth an estimated $14 billion.
By Jim Ottewill