US Treasury sells stake in Citigroup

| December 8, 2010 | 0 Comments
US Treasury sells stake in Citigroup

The US Treasury has disposed of its remaining stake in Citigroup - bringing a net profit to taxpayers of $12 billion (£7.6 billion).

The banking giant, which was badly hit during the financial crisis, was the recipient of a $45 billion cash bailout in 2008 and 2009, with the funds coming from the Troubled Asset Relief Program (TARP).

Commenting on the sale, Tim Massad, acting assistant secretary for financial stability, said: “By selling all the remaining Citigroup shares today, we had an opportunity to lock in substantial profits for the taxpayer.

“We have advanced our goals of recovering Tarp funds, protecting the taxpayer and getting the government out of the business of owning stakes in private companies,” Mr Massad added.

Following the sale, shares in the banking giant surged nearly 4% to $4.62.

It is now estimated that the cost of the TARP will cost the US taxpayer $25 billion - far less than previous estimates.

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