US government sells remaining Citi stake for $10.5-bn profit
07 Dec 2010
The US government yesterday sold off its remaining stake in banking giant Citigroup in a $10.5-billion offering.
In all it has booked $12-billion profit, and has also brought the third-largest bank in the country closer to independence from part government ownership following a $45-billion bailout in 2008.
By reaping a $12 billion profit, the government has silenced its critics, who had critisised the bailing out Wall Street banks, claiming them to be responsible for unleashing the worst global financial crisis since World War II.
The US Treasury yesterday sold 2.4 billion shares of Citigroup common stock for $4.35 each to rake in $10.5 billion.
"By selling all the remaining Citigroup shares today, we had an opportunity to lock in substantial profits for the taxpayer and avoid future risk," Tim Massad, acting assistant Treasury secretary for financial stability, said in the statement.
"With this transaction, we have advanced our goals of recovering (Troubled Assets Relief Program) funds, protecting the taxpayer, and getting the government out of the business of owning stakes in private companies."