Business
See other Business Articles
Title: Treasury Set to Sell Citigroup Shares, Could Net Significant Profit
Source:
[None]
URL Source: http://www.politicsdaily.com/2010/0 ... res-could-net-significant-pro/
Published: Mar 29, 2010
Author: David Sessions
Post Date: 2010-03-29 13:05:17 by Brian S
Keywords: None
Views: 309
Comments: 5
The Treasury Department said Monday that it would begin selling the 7.7 billion shares of Citibank it obtained in exchange for giving the bank $25 billion in 2008, the Associated Press reports. The government is working to shed the investments it made in American banks and corporations under the Toxic Asset Relief Program, or TARP. Selling its holdings of Citi stock could net the U.S. a significant profit. Citi, one of the hardest hit banks during the 2008 financial crisis, received $45 billion in bailout money, $25 million of which was converted to the stake the government is now preparing to sell. Citi repaid the other $20 billion in December 2009. The government paid $3.25 a share for its nearly 8 billion shares. The Treasury put them on the market just as Citi was set to repay its bailout money in December, only to find lukewarm interest. The best price offered was $3.10 per share, a 15-cent loss per share that would have added up to nearly $160 million. Citi shares rose to $4.39 on Monday morning, but had fallen to $4.17 by noon Eastern time. A sale at $4.39 per share would net the government an $8 billion profit.
Post Comment Private Reply Ignore Thread
Top • Page Up • Full Thread • Page Down • Bottom/Latest
#1. To: Brian S (#0)
Buy low sell high.
#67. To: war (#48) Keep hiding behind the bozo, bozo. (laughing) You've always been a world class pussy. Badeye posted on 2010-01-14 16:12:48 ET Reply Trace
I missed the citi trade but sure am loving my Ford.
Never swear "allegiance" to anything other than the 'right to change your mind'!
I did the opposite...if all goes correctly I am 10-15 years from retiring...I own a good snick of it and the historicals over 20 years peg it as a 25 buck stock...my avg cost is <$2...
#67. To: war (#48) Keep hiding behind the bozo, bozo. (laughing) You've always been a world class pussy. Badeye posted on 2010-01-14 16:12:48 ET Reply Trace
Not according to this chart.
"I’ll just tell you this, if this passes and it’s five years from now and all that stuff gets implemented — I am leaving the country. I’ll go to Costa Rica!" -Rush Limbaugh
The government did not get the shares in the open market but purchased warrants that pegged a specific purchase price.
#67. To: war (#48) Keep hiding behind the bozo, bozo. (laughing) You've always been a world class pussy. Badeye posted on 2010-01-14 16:12:48 ET Reply Trace
#2. To: war (#1)
#3. To: Brian S (#2)
#4. To: Brian S (#0)
(Edited)
The government paid $3.25 a share for its nearly 8 billion shares.
#5. To: Skip Intro (#4)
Top • Page Up • Full Thread • Page Down • Bottom/Latest
[Home] [Headlines] [Latest Articles] [Latest Comments] [Post] [Mail] [Sign-in] [Setup] [Help] [Register]