Economy

Treasury To Start Selling Citi Shares; Billions In Profits Possible

The Treasury Department confirmed this morning that it plans to sell its 7.7 billion shares of Citigroup over the course of this year.

As the Associated Press reminds us, the government got those shares "in exchange for $25 billion it gave the bank during the 2008 credit crisis."

At this moment, Citi's shares are trading at $4.33 each. So the government's stake is worth more than $33 billion — meaning, as American Banking News says, a potential $8 billion profit for Uncle Sam.

The plan, Treasury says in its statement, is to sell the shares "into the market through various means in an orderly and measured fashion."

Citi already repaid another $20 billion in bailout money it got from the federal government.

Planet Money explains the financial news here.

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