U.S. Treasury to sell Citi common shares in 2010

The Treasury, which acquired an outsized stake in the bank during bailouts in 2008 and 2009 said it would sell its common shares into the market “in an orderly and measured fashion.” The United States owns 27 percent of the bank’s shares, and stands to earn about $7 billion profit if it can sell near current values — bringing its total estimated profit to more than $15 billion.

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The Treasury said the sale will be based on a prearranged trading plan and the manner, size and timing of sales will be “dependent upon a number of factors.” Morgan Stanley (MS.N) is advising the United States on the share sale.

The plan provided some relief to investors who feared all 7.7 billion shares would hit the market at once.

“Everyone knew that Treasury was going to sell the stock. The question was how,” said Timothy Ghriskey, chief investment officer at Solaris Asset Management LLC, a Bedford Hills, New York money manager with $2 billion in assets. [Read the full article]

The U.S. Treasury’s prearranged trading plan for Citigroup (C.N) common stock will sell shares in “at the market” offerings, a Treasury spokeswoman said on Monday.

Details of the plan will be made public in the next 48 hours when the Treasury publishes its advisory contract with Morgan Stanley (MS.N), the spokeswoman, Meg Reilly said.

She added that the Treasury has made no projections about profits yet. (Reporting by David Lawder; Editing by James Dalgleish)

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For details of the U.S. Treasury’s offering of 4-week bills and 56-day and 18-day cash management bills this week, please see:

Prices of single-family homes rose in January for the eighth straight month and the annual rate moved the closest it has been to an increase in three years, Standard & Poor’s/Case Shiller home price indexes showed on Tuesday. [Read the full article]

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