Mar 29, 2010
Citigroup: US to sell its stake in bailed-out bank
The US government is preparing to sell its 27% stake in Citigroup, in what would be one of the largest share sales in history.
Some 7.7 billion shares in the bailed-out bank will be sold in tranches throughout 2010, the US Treasury said.
It will mark another stage in Wall Street’s recovery, and could make the US taxpayer $8bn (£5.3bn) in profit.
Citigroup, which has posted more than $100bn in write-downs, required three government rescues in 2008 and 2009.
At Citigroup’s opening share price of $4.39 on Monday, the Treasury’s stake would be worth just over $33bn, giving an $8bn profit to the US taxpayer.
State-owned private enterprise… an interesting way to close the budget gap!
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I'm a high school dropout, the long-term CEO of blip.tv and a former warblogger.
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