US Will Make A Profit On Citigroup (C) Investment
It looks like the United States government will make a tidy profit from its Citigroup (C) investment. The government is set to net $7.19 billion dollars from its $25 billion dollar investment in Citigroup. That's a 28.7% return on investment.
According to the Wall Street Journal, "If that price level holds up, it would be the largest U.S. profit on any such TARP investment, exceeding $4.27 billion on dividends and sale proceeds from preferred stock and warrants in Bank of America Corp., according to Linus Wilson, a finance professor at University of Louisiana at Lafayette."
The government will look to unload its 7.7 billion shares before the year ends. The US Treasury plans to sell its shares in increments so that Citigroup's stock price is not adversely affected. Finally, some good news for the US taxpayer. The government is recouping their investments in many of the larger financial institutions and making a profit to boot.
