Government Finally Selling Citigroup Stocks
Well, I guess it had to happen eventually.
After Citigroup finally posted its first profit in a very long time, the Treasury Department finally feels it’s time to shed itself of all that stock that they bought when Citigroup was in trouble.
How much are we talking about? The government, which by extension means we the people, own around 7.7 billion shares, which means about 27% of all the Citigroup stock. Because the stock price of Citigroup is higher now than it was when the government took it over, it will add some needed funds back into the United States coffers folks; I’m betting we’re not going to be seeing a dime of that for a long while, if ever, in our pockets.
Anyway, the government is only selling 1.5 billion shares right now, so we’re looking at a profit of around $2.4 billion. Oddly enough, Citigroup‘s share price dropped after the announcement was made, around 5%, which has thrown off the Japanese market by 5.2%; amazing how related all these things are, isn’t it?
Still, this is all good news for Citigroup, as it works to full sever all its ties with the federal government. It’s good news for the rest of us also, because it may mean that finally we, the people, are out of the banking business. Not sure we were all that good at it anyway; I’m not sure they’re all that good at it either.