U.S. Treasury To Sell Citi Shares

Bloomberg reports today that The U.S. Treasury intends to sell its 27% ownserhip of Citigroup Inc. using a "preset trading plan" which locks the government into a selling schedule.

As to who will be in charge of the sale, Citigroup itself applied for the job and offered to do it for a discount, according to the report. This is not likely as it would appear as a conflict of interest. Several firms are running, including JPM, GS, and MS. Whoever gets its will undoubtely earns even more millions in profits.

Last year, the Treasury converted $25B of the bailout funds into common shares at a price of $3.25. The current price is $4.15, for a current Treasury stake of $31.9B, or a paper profit of $6.9 billion.

One would expect C shares not to fall until then.