The U.S. Department of Treasury said that it will sell some of the $2.2 billion worth of debt securities that it holds in Citigroup, Inc (NYSE: C), the latest in a series of debt and equity sales by the government in a move to divest itself from the New York-based bank.
Taxpayers invested more than $45 billion of capital into Citigroup, Inc (NYSE: C) in 2008 and 2009 through a series of emergency actions which lead to taxpayers owning 33% of Citigroup’s stock and more than $20 billion in company debt. Citigroup has since repaid the $20 billion in debt that it owed to the U.S. government at the end of 2009.
The Treasury Department is also in the process of selling off its Citigroup, Inc (NYSE: C) stock. The government started selling its stock in April and had sold 2.6 of the 7.7 billion shares it originally owned by July 23rd. The U.S. Treasury said that it had hoped to sell another 1.5 billion shares by September 30th.
Citigroup Inc. (Citigroup) is a global diversified financial services holding company. The Company provides consumers, corporations, governments and institutions with a range of financial products and services. As of December 31, 2009, Citigroup had approximately 200 million customer accounts and did business in more than 140 countries. Citigroup operates through two primary business segments: Citicorp, consisting of its Regional Consumer Banking (RCB) businesses and Institutional Clients Group (ICG), and Citi Holdings, consisting of its Brokerage and Asset Management (BAM), Local Consumer Lending (LCL), and Special Asset Pool (SAP). In April 2010, Barclays PLC acquired Italian credit card business of Citibank International Bank plc. In May 2010, the Company announced the creation of a new Collateral Management Services unit within its Securities and Fund Services business.
Shares of Citigroup, Inc (NYSE: C) traded up 0.97% during mid-day trading on Wednesday.
