U.S. turns a $12-billion profit on Citigroup bailout

Discussion in 'Wall St. News' started by Pekelo, Dec 7, 2010.

  1. Pekelo



    "Taxpayers earned a $12-billion profit on the U.S. Treasury's $45-billion bailout of Citigroup Inc., the government reported as it sold the last of its stock in the banking giant.

    The Treasury said late Monday that it sold 2.4 billion Citigroup shares to private investors at $4.35 apiece, raising $10.5 billion.

    That brought to $57 billion the government's total proceeds from the bank, including previous sales of Citigroup stock as well as dividend and interest income that the bank paid the government.
    "By selling all the remaining Citigroup shares today, we had an opportunity to lock in substantial profits for the taxpayer and avoid all future risk," Tim Massad, acting assistant secretary for financial stability, said in a statement. "With this transaction, we have advanced our goals of recovering TARP funds, protecting the taxpayer and getting the government out of the business of owning stakes in private companies."

    The Treasury's remaining stake of preferred stock was converted to 7.7 billion Citigroup common shares, which it has been selling since spring. The government's cost basis for the shares was $3.25 each.

    As the bank returned to profitability this year, its stock had risen 34% year to date through Monday, when it closed at $4.45 a share. The Treasury said the average selling price for its entire 7.7-billion-share stake came to $4.14 a share."
  2. "Taxpayers earned a $12-billion profit on the U.S. Treasury's $45-billion bailout of Citigroup Inc., the government reported as it sold the last of its stock in the banking giant.


    Interesting. Our gov't never turned a profit on any venture but hmnn.. now we need a dump truck for the profits.

    These bailouts are quite profitable for the taxpayers.
  3. Profit for the taxpayer..............


    (take a breath)

  4. "Taxpayers earned a $12-billion profit...

    Which will get us the most votes: apply the "profit" to the deficit or start a Crackhead Subprime Mortgage Program.
  5. Bob111


  6. 12B profit is great!

    Does anyone know when we can expect the checks for our share?
  7. Woohoo!!! I can't wait to see how much money us taxpayers will be getting from this stock sale. I think I'll start looking at new Ferraris.
  8. bootize


    Government $12B profit ...

    will soon translate to....

    $12B+ in brand NEW government wasteful spending!!

    Oh joy! More "free" goodies for the sheeple!
  9. Great investment with my money. When can expect my cut? OH, I forgot, profits are privatized. Only the losses are socialized in our new age of "capitalism".
  10. Bob111


    according to their numbers they did make 9 trillion in profits on the whole bailout thing..that's about 25B for every american. fuck yeah! beat that, Germany!what a country,huh?
    #10     Dec 8, 2010