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  • Bailing out Citigroup Inc. (NYSE:C) Brings Profits for Treasury

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    Friday Oct. 1, 2010 at 09:17 am EST
     
    Treasury in Profit By Bailing Out Citigroup Inc. (NYSE:C) 
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    On Thursday, the US Treasury Department said it anticipates to make a profit for taxpayers by selling shares in Citigroup, as it sells another part of its stake from the bank. So far the Treasury Department has received $41.6 billion by selling stock sales and repayments of Citi, after pumping 45 billion dollars into the firm as part of the Troubled Asset Relief Program. It further plans to sell $2.25 billion worth of trust preferred securities in the firm soon, and announced the sale of 1.5 billion additional shares of Citigroup common stock. Based on Thursday's stock prices, the government is looking forward to have its bailout returned with interest.


    In 2009 US government intervened to stop Citigroup from going under by agreement to share all losses on assets worth $301 billion held by the bank. This agreement for sharing the loss had ended in December 2009, but the government still hold around $14 billion worth of Citi shares, which is about 12 percent share. The agency said in a statement, "To date, Treasury has sold approximately 4.1 billion shares of Citigroup common stock for gross proceeds of approximately 16.4 billion dollars,"


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