US sells Citi stake for profit
The last of the US Treasury’s shares of Citigroup Inc sold at $10.5 billion. This means taxpayers will reap a profit of $12 billion on their $45 billion cash investment in Citigroup. It also allows the bank to shake its reputation as a ward of the state.
James Angel, a finance professor at Georgetown University said: “It signals the company has been fully privatized and that their parole is over.”
Last year, the Treasury intended to sell off their 7.7 billion shares steadily over the course of six to 12 months, but had only sold 4.4 billion by October. The results of the November elections seemed to express discontent with government involvement in private business. As a result, the Treasury has increased its speed in selling off its 61% stake in General Motors.
The government still holds $3 billion in Citigroup stock.
Posted on December 7, 2010, in Newspaper & Journal Articles, Politics & The Economy, Stocks, Bonds, & Funds and tagged Citi, Citigroup, Citigroup inc, General Motors, GM, Treasury, US Treasury. Bookmark the permalink. Leave a comment.