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.
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.