Citigroup, Inc (NYSE: C) will pay rival firms including Bank of America Corp (NYSE: BAC), JPMorgan Chase & Co. (NYSE: JPM), Morgan Stanley (NYSE: MS), UBS AG (NYSE: UBS) and Wells Fargo & Co. (NYSE: WFC) $55.7 million for underwriting sales of $2.2 billion worth of the bank’s securities that are owned by the U.S. Treasury Departmetn.
The New York-based bank is expected to pay about the above companies, along with 50 other banks, including Goldman Sachs Group Inc. (NYSE: GS), Deutsche Bank (NYSE: DB) and Barclays PLC (NYSE: BCS). Citigroup, Inc (NYSE: C) will not be underwriting any of the deal.
The Treasury Department will be selling trust preferred securities (TruPS) which it received as compensation for guaranteeing Citigroup, Inc (NYSE: C) assets as part two bailouts totaling $45 billion in 2008. Last week, the Treasury announced that it had cut its stake in Citigroup, Inc (NYSE: C) to about 12%, down from 18%, netting a $1.02 billion profit for taxpayers.
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 down 1.47% during mid-day trading on Monday.
