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Citigroup Stake Sale Makes $12Bn Profit For Us Taxpayers

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http://www.guardian.co.uk/business/2010/dec/07/citigroup-stake-sale-twelve-billion-profit

The US government sold off its remaining shares in Citigroup on Monday for $4.35 each, marking an end to its ownership in the bailed-out banking giant with a $12bn (£7.6bn) gross profit for taxpayers.

The US Treasury said it will take in $10.5bn in sale proceeds from a public offering of 2.4bn Citigroup shares, announced just hours earlier. The price is 10 cents below the $4.45 closing price on the New York Stock Exchange.

"By selling all the remaining Citigroup shares today, we had an opportunity to lock in substantial profits for the taxpayer and avoid future risk," said Tim Massad, Treasury acting assistant secretary for financial stability.

"With this transaction, we have advanced our goals of recovering TARP (Troubled Asset Release Programme) funds, protecting the taxpayer, and getting the government out of the business of owning stakes in private companies," Massad added in a statement.

The Treasury invested a total of $45bn to bail out Citigroup in 2008 and 2009 during the financial crisis. The company paid back $20bn in preferred stock, while another $25bn was converted to 7.7 billion common shares held by the Treasury.

Good news for everyone, and that $12bn will make a huge dent in this years US govt $1.5tr deficit.

Champagne all round I think.

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Good news for everyone, and that $12bn will make a huge dent in this years US govt $1.5tr deficit.

Champagne all round I think.

Don't be so negative ;) A profit is a profit. When will the UK Government make a return for us? Please refrain from using the terms; hell, freezes and over :P

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http://www.guardian.co.uk/business/2010/dec/07/citigroup-stake-sale-twelve-billion-profit

Good news for everyone, and that $12bn will make a huge dent in this years US govt $1.5tr deficit.

Champagne all round I think.

TARP loans = $550Bns. Repayments so far $220Bns. Where's the profit?

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The bailout is looking better by the day. It obviously seemed insane at the time, like who would invest huge when things are collapsing and the stock is down 98% or whatever. But with a Citigroup who in a good economy has great value, when things turn around it is very valuable. And things are sort of treading water, imagine if the feds had engineered an actual economic recovery and back on the growth path.

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I find it hard to be cynical about this. As someone said above, a profit is a profit.

They would have bailed them out if they didnt expect to see a penny back so this is definetly a result.

Edited by Kyoto

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The bailout is looking better by the day. It obviously seemed insane at the time, like who would invest huge when things are collapsing and the stock is down 98% or whatever. But with a Citigroup who in a good economy has great value, when things turn around it is very valuable. And things are sort of treading water, imagine if the feds had engineered an actual economic recovery and back on the growth path.

shame about the debt, which hasnt been defaulted and is still there.

worse, the empty box MBS these bankers hold as assets....

At the mo, the bankers are paying their own game of Deal or No Deal.

in this version, the banker Always offers $250,000 to its fellow banker player....even if only the 1c 5c boxes are unrevealed.

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  • 312 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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