Big banks Lead by Citigroup higher on TARP payoff talk

On Thursday there has been a rise in shares of Citigroup following reports of an expected share offering that would raise money.

This money would help the bank repay the U.S. government’s investment under the Troubled Asset Relief Program, or TARP.

While it has been acknowledged by the analysts that current common shareholders would be diluted by planned offering.

While some of them has suggested that strong institutional demand could help offset that. In early trade Citi shares added 0.8%.

Rise in the shares of BOE, Wells and Financial Select Sector

On Wednesday Bank of America, which has repaid its TARP investment, rose 1.4%. Wells, which is also willing to exit the TARP via paying off the investment, saw a 0.4% rise in its shares. In the broader financial sector, there has been a rise of 0.6% in the Financial Select Sector.

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Tagged as: Bank of America, Banks, Citigroup shares, financial institutions, Financial Select Sector, rise in Citigroup shares, TARP, TARP investment, Troubled Asset Relief Program, Wells