The Treasury Department said Monday it would begin selling off the remaining 2.4 billion shares of Citigroup common stock the government holds as a result of aid provided to the bank during the financial crisis.
The planned sale, which the Treasury said would be completed only if it receives an “acceptable price” for the shares, would not end Citi’s ties to the government. The Treasury would continue to hold warrants for the bank’s common stock, and is eligible for an additional $800 million in securities tied to government guarantees on Citi’s debt.
Still, the Treasury’s ability to successfully dispose of the 7.7 billion shares of Citi it received during the financial crisis would mark a symbolic step, as both the government and private sector seek to step back from the government intervention necessitated by the financial crisis.
Citi said in a statement that it was pleased by the move, adding that the bank was “very appreciative” of the taxpayer aid it received during the financial crisis.
The Treasury had hoped to sell all of its shares of Citi stock by year’s end, though that timeline seemed unlikely to be met.
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