US Treasury Earns Profits on the Sale of Stake in Citi
The US Treasury has announced that the sale of its part in Citigroup has fetched a profit amounting to $12-billion. The profit has been earned on its overall investment in Citigroup It needs to be remembered that the US government had provided a relief bail-out of $45-billion to the financial group, after it had crashed out in one of the worst economic downturns ever witnessed.
The money that had been pumped into the Company was a part of the relief plan that had been implemented by the government to fund all the troubled organizations in the country. The government had reportedly spent a sum amounting to $700-billion as a part of the Troubled Asset Relief Program.
It was on Monday, that the Federal body had decided to sell off its shares worth $4.35 each.
Talking about the current development, the Assistant Secretary for Financial Stability, Tim Massad said that by selling shares today, the government was able to make some substantial profits and wasable to do good for the taxpayer.
Mr. Massad further said that the organization had decided to advance its goal of earning back the money it had pumped in to private enterprises by selling of such shares.