Treasury resumes Citigroup share sales

WASHINGTON (BestGrowthStock) – The Treasury Department said on Tuesday it has launched a fourth sale of 1.5 billion shares of Citigroup Inc (C.N: ) common stock under a prearranged

trading plan.

The Treasury received 7.7 billion Citigroup shares in exchange for $45 billion in bailout investments from the Troubled Asset Relief Program.

Tuesday’s sale, which follows the announcement of better-than-expected Citigroup third quarter earnings the previous day, will bring the U.S. government’s stake in the once-stricken banking giant down to seven percent.

Under the trading plan, Morgan Stanley has discretionary authority to sell Citi shares into the market under certain parameters.

Since it began selling down its 27 percent stake in the bank, the Treasury has taken in $41.6 billion in sale proceeds from the disposal of about 4.5 billion shares.

Citigroup shares fell 3 cents to $4.14 in premarket trade.

Citigroup on Monday jumped 5.6 percent after its results beat Wall Street’s forecasts, boosting optimism that the banking sector’s recovery remains on track despite a sluggish economic expansion.

(Reporting by David Lawder; Editing by Padraic Cassidy)

Treasury resumes Citigroup share sales