The US Treasury
is set to sell its 27 percent stock in Citigroup
18 months after rescuing it. The profits from the bailout will be approximately $7.5 billion
, which overall is pretty good considering the shape Citigroup was in when the US was forced to acquire part of its stock. The government has hired Morgan Stanley to take care of the sale.
The move represents a larger action by the government to start unravelling its stocks and invesments from the Troubled Asset Relief Program
. The Citibank profit will be the largest of any of the TARP investments. It made about $4.27 billion on its sales from its stocks and investments in Bank of America.
“Today’s announcement that Treasury will sell its shares of Citigroup is good news for the taxpayer and further proof that the Troubled Assets Relief Program (TARP)
worked as intended. This sale could result in a profit of nearly $7.5 billion, and these funds, by law, must go to pay down our massive federal debt that currently rings in at $12.7 trillion," stated Judd Gregg
, (NH-R) commenting on the sale.
More on this sale here