The Treasury Department announced Friday that it would sell another 1.5 billion shares of common stock in Citigroup Inc. as it continues its effort to recoup its investment in the company.
The new round of sales -- the third in recent months -- would cut Treasury's remaining stake in Citigroup to 3.6 billion shares.
Citigroup received $25 billion in taxpayer aid through the Troubled Asset Relief Program in October 2008. It issued preferred stock to the Treasury in return for that investment, made through TARP's Capital Purchase Program.
Citigroup later got an additional $20 billion through TARP's Targeted Investment Program. It paid back that money last December.
Treasury converted its Citigroup preferred stock into 7.7 billion shares of common stock, at a converstion price of $3.25 a share. That gave it a 34 percent stake in the company.
In May, Treasury sold 1.5 billion Citigroup shares for nearly $6.2 billion; in June, it sold 1.1 billion more for just over $4.3 billion.
The current round of sales will end Sept. 30 -- even if all 1.5 billion shares haven't been sold -- because of a blackout period set by Citigroup ahead of its third quarter earnings release.
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