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.

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