Treasury looks to profit off of Sale of Citibank shares

[Clio the Leo]

Treasury looks to profit off shares

The Treasury Department said Monday that it will begin selling its stake in Citigroup, a deal that could result in one of the largest stock sales ever.

Citigroup shares opened at $4.38 Monday morning, and the government could make a $8.7 billion profit by selling its 7.7 billion shares at that price.

During the 2008 financial meltdown, Citigroup received more than $45 billion in federal aid in exchange for preferred shares. The New York bank repaid $20 billion of the loan it owed last year. And the remaining $25 billion was converted into common stock at $3.25 a share.

Because the beleaguered bank could not promise to repay the aid in cash, it was the only bailed-out bank to give the government common shares.

The sale will be spread out over this year, “subject to market conditions,” Treasury said.

“Treasury intends to sell its Citigroup common shares into the market through various means in an orderly and measured fashion,” the department said. “Treasury intends to initiate its disposition of the common shares pursuant to a pre-arranged written trading plan. The manner, amount and timing of the sales under the plan is dependent upon a number of factors.”

The sale brings the government one step closer to President Obama’s pledge to recover “every single dime the American people are owed.”

http://www.politico.com/politico44/perm/0310/making_a_citi_penny_594e7601-1565-45f9-b537-36e6f6a11ed2.html

[mkultra]

1. all that fear over the risk and it all came back

Thanks to all those who wanted a lost decade but no thanks.

[vaberella]

2. People just want to hate. Remember the massive hate on Summers and Geightner?! n/t

[Tarheel_Dem]

3. The most important quote:

The sale brings the government one step closer to President Obama’s pledge to recover “every single dime the American people are owed.”

[Cha]

4. Thanks for the money quote..

Tarheel!

[Tarheel_Dem]

7. You know you're always welcome Cha! This will be dismissed by some, though.

:toast:

[Cha]

9. ..

Kick:toast:

[ClarkUSA]

5. So thanks to Geithner, the U.S. Treasury (and American taxpayers) are going to be $8 billion richer?

Wow! It looks as if all the 24/7 Obama Administration naysayers were wrong again.

[Phx_Dem]

6. Yeah, funny thing. He's actually done good job dealing with

the biggest economical crisis since the Great Depression.

I always think it's a good idea to see if someone actually fails in his job before calling for him to be fired.

[ClarkUSA]

8. I agree.

Those calling for Geithner to be fired are as ignorant and bitter as the teabaggers who want President Obama to be impeached over HCR.

[harkadog]

11. No they are not going to be $8 billion richer.

The announcement drove down the price of the stock. The Feds made a dumb move by announcing in advance. They should have just sold unannounced like the big players do. They would have made a lot more money.

[ClarkUSA]

12. What goes down must go up. It's a momentary decline, given the improving economic indicators.

Anyway, the point of my statements stands. Taxpayers stand to make billions in profit after a year. Not bad.

[Cha]

10. Kick

[Ikonoklast]

13. But....but...but...we were all gonna lose our asses in this deal!!!

How dare they have a policy that worked as advertised!

The haters can't seem to get their head around the fact that no matter how much they squint their eyes and squeeze their tiny fists in rage, Mr. Obama is quietly succeeding in righting the ship of state, and re-energizing the economy.


And every accomplishment enrages them even further.

[brooklynite]

14. Who gets to use the "Thank You Reward Points"?