Tuesday, October 19, 2010

Treasury Authorizes Sale of More Citigroup Stock

Earlier today it was reported that the federal government would begin a fourth round of sales of Citigroup stock. The move is part of the fed's ongoing effort to recoup costs from the financial bailouts.

ABC News reports:

    The Treasury Department said Tuesday it had given Morgan Stanley, its agent for the sales, authorization to sell an additional 1.5 billion shares of Citigroup stock beginning immediately.

    Citigroup received $45 billion in taxpayer support in one of the largest bank rescues by the government. The government also provided the bank with insurance against losses on a pool of $301 billion in assets.

    Of the $45 billion in taxpayer support provided to Citigroup, $25 billion was converted to a government ownership stake that the Treasury has been selling off since last spring. The bank repaid the other $20 billion in December 2009.

    The announcement of the new stock sales came a day after Citigroup announced that it had posted its third straight quarterly profit.

    The bank, which is still 12 percent owned by the government, earned $2.15 billion, or 7 cents per share, in the three months ending in September.

Read more here

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