Citigroup Shares: The Selling Continues
Citigroup Inc. (NYSE:C) shares continue to rise, today they are up 3.6% to $4.61, the market is happy that Uncle Sam is getting out of their business.
WallStNation.com Sponsors - Become one Today
Over the past 12 months Citigroup Inc (C) shares have traded between $3.11 and its 52-week high of $5.07. Citigroup shares have rallied 21% in the last three months and in 2010 they are up 39.4%. Great news today as the U.S. Treasury Department announced it sold its remaining stock in Citigroup Inc. for $10.5 billion, bringing the country’s third-biggest bank a step closer to independence from the government following a $45 billion bailout in 2008.
The Treasury said it disposed of 2.4 billion shares at $4.35 each, compared with yesterday’s closing price of $4.45 on the New York Stock Exchange. The sale raises the profit for taxpayers on the rescue to about $12 billion, including the share gain, dividends and proceeds from other securities.
The sale helps Citigroup exit the 2008 bailout, which was provided to keep the New York-based bank from collapsing as its stock sank below $5 and some depositors started withdrawing their money. Citigroup also had to get $301 billion of government guarantees on its riskiest assets, making the bailout the biggest among U.S. banks.