Treasury decided to Retain Citigroup’s Stocks

The Wall Street Journal reports that just two days after announcing plans to sell as much as $5 billion in shares of Citigroup, the U.S Treasury Department has canceled the sale.

This has been done due to the low prices that would have caused the agency to lose money.

$45 billion have been received by Citigroup from the Troubled Asset Relief Program, and the Treasury’s plans would have reduced the government’s 34% stake in the company.

The US Treasury has announced a revised plan. Under this plan the shares will be sold off over the course of the next 12 months after a 90 day waiting period. This has been announced as treasury faced with a loss of $770 million on the deal.

Search Here

You might also like

Citigroup would repay $20 Billion Government Bailout Citigroup Inc., who is the recipient of the biggest U.S. bank bailout, has struck a deal with regulators...

Citigroup would repay $20 Billion Government Bailout Citigroup Inc., who is the recipient of the biggest U.S. bank bailout, has struck a deal with regulators...

What do you know about Wall Street? Wall Street is the name of a famous street which runs through lower Manhattan. It is the historic site...

Treasury’s Distressed Debt Plan Said to Begin With $20 Billion The US Treasury Department may initiate its program in order to encourage purchases of mortgage-backed...

Tagged as: Citigroup, Citigroup’s Stocks, TARP, the Troubled Asset Relief Program, U.S Treasury Department, U.S. Treasury, US economy, US Treasuries