Treasury says it will begin selling Citi shares

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http://www.washingtonpost.com/wp-dyn/content/article/2010/03/29/AR2010032900915.html?hpid=topnews

The Treasury Department said Monday it will begin selling the stake it owns in Citigroup Inc., which could result in a profit of more than $8 billion.

The government received 7.7 billion shares of Citigroup in exchange for $25 billion it gave the bank during the 2008 credit crisis. It said it will sell the shares over the course of this year, depending on market conditions.

Like any investor, the government will likely hold on to its shares if prices fall steeply. However, Citi shares have steadily been rising with the broader market in recent months, which means the Treasury Department stands to pocket a hefty profit.

Citi shares rose 8 cents to $4.39 in early trading Monday. The government would make about $8.8 billion in profit on its stake in Citigroup if it sells the stock for $4.39 a share.


http://news.yahoo.com/s/ap/20100329/ap_on_bi_ge/us_citigroup_treasury