WASHINGTON - The Treasury Department said late Monday evening it had sold its remaining stake in Citigroup Inc., a symbolic end for one of the more controversial government rescues during the financial crisis.
The Treasury said in a release it had priced the sale of 2.4 billion shares of Citi common stock at $4.35 per share. The sale completed the department's efforts to exit its stake of 7.7 billion shares of Citi common stock it received in return for billions in government aid provided to the bank to help it weather the financial crisis. Treasury said that it expects to receive $10.5 billion in proceed from the sale.
The sale does not end Citi's ties to the government. The Treasury would continue to hold warrants for the bank's common stock, and is eligible for an additional $800 million in trust-preferred securities tied to government guarantees on Citi's debt.
The Treasury said it expects to make a sizable profit on the $45 billion in government aid provided to Citi. The department said the proceeds from Monday's offering should allow it to realize a profit of $12 billion on the $45 billion investment in the firm, including repayments on trust-preferred securities, stock sales and interest and dividends paid by the firm.
"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 secretary for financial stability, said in its release Monday night.
