During the 2008 credit crises, the Treasury Department received 7.7 billion shares of the Citigroup Company for the $25 billion dollars it loaned to the bank. The Treasury plans to sell the shares throughout the coming year. If stock prices for the company stay high, the department could actually make a profit on the deal.
The shares were bought for $3.25 each. The current stock price is about $4.23 dollars. Citigroup has already paid back an additional $20 billion dollars it borrowed from the government during the crisis. It’s wonderful that the government may actually profit on the deal. I hope they can use the money to pay down the debt!!