As part of the bank bailout, TARP infused Citigroup with $45 million. In December, Citigroup paid the government back $20 million, leaving a balance of $25 million. TARP exchanged the debt for 7.7 billion shares of stock.
Today, the Treasury announced that it will sell these shares over the course of 2010. The Treasury paid $3.25 per share. This morning, Citigroup was trading at $4.23. That means if the shares were all sold today, the government would get a net profit of about $7.5 billion. That is in addition to the approximately $8.1 billion the Treasury has already collected from Citigroup in interest and fees.
Not a bad return on YOUR investment!
No comments:
Post a Comment