Keefe Bruyette & Woods Comments On Citigroup Following Treasury Sale

On Monday, the Treasury announced its intent to sell its remaining 2.4 billion share stake of Citigroup Inc.

common stock. Keefe Bruyette & Woods estimates the index impact of this transaction on the investable weight factor (

) of C in the S&P 500. KBW's target price could be negatively impacted by credit quality challenges, key loss of personnel, poor capital markets performance, and macro-related events that negatively impact markets' liquidity. In addition, significant government ownership and the potential for a valuation allowance on its large deferred tax asset are added risks. KBW has a Market Perform rating on C C closed Monday at $4.45 and is trading almost 2% higher in pre-market trading