Saturday, July 24, 2010

U.S. to further sell down Citigroup interest.........

WASHINGTON (MarketWatch) -- The Treasury Department announced Friday that it intends to sell more Citigroup Inc. shares as the agency moves toward closing out a chapter of the government's $700 billion bank bailout.

The Treasury said it intends to sell 1.5 billion additional common shares of Citigroup /quotes/comstock/13*!c/quotes/nls/c (C 4.04, +0.02, +0.50%) , about 30% of the remaining 5.1 billion shares that it owns.

The government has already sold 2.6 billion of the Citigroup shares in return for $10.5 billion in gross proceeds.

The Treasury said the trading plan will end on Sept. 30 even if all shares have not been sold by that time because of the blackout period set by Citigroup in advance of the release of the New York banking giant's financial results for the third quarter.

The government received 7.7 billion shares of Citigroup common stock last summer, the result of several bailouts of the financial-services giant.

There are nearly 29 billion Citigroup shares outstanding, according to FactSet Research.

On the heels of rising 3% to close at $4.09 on Thursday, shares of Citigroup sank more than 1% in pre-market action

The capital market seems to be healing at amazing rate. When someone like the US Treasury department dumped almost 2.6 billion shares or 10% of total outstanding shares over a period of last 3 months, the share price seems to be able to withstand it very well. I don't see any impact of further "cashing out" will have an impact on its share price.

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