U.S. Treasury’s Citigroup Shares Sell Might Result In $7 Billion Profit
March 30th, 2010 - 8:04 pm ICT by GDBy Gina Gomez
Mar 30, (THAINDIAN NEWS) The United States government is all set to sell its 27 per cent stake in the banking giant Citigroup Inc., according to the announcement made by the U.S Treasury Department. It has been revealed that the U.S. government’s stakes in the financial giant would be sold entirely by the end of this year, which might result in profits to the tune of $7 billion for the United States government.
While declaring the decision to sell Citigroup Inc. stakes, the U.S. Treasury Department also pointed out that it would be going ahead with the plan in an extremely orderly and well-planned manner as the year passes, keeping in mind that the markets remain stable while also aiming to increase the profits to a larger extent as well as taking into consideration other key factors. Many reports have also stated that the U.S. government intended to sell its Citigroup shares last year itself but decided against it when the share price of the bank slipped under $3.20 in the month of December last year, fueling concerns that the investment might result in financial losses.
Meanwhile, the U.S. government has revealed that Morgan Stanley has been hired as the capital market adviser in order to take care of the selling of 7.7 billion shares of the banking giant, which stands as one of the last holding of the government in Citigroup. One of the major roles that Morgan Stanley is likely to play is to advise the U.S. Treasury Department about the timing of the sale, with the aim of ensuring maximum amount of profits.
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Tags: adviser, aim, citigroup, citigroup inc, extent, financial losses, giant, gina gomez, morgan stanley, profits, share price, stake, taking into consideration, treasury department, u s treasury, u s treasury department, united states government