Colin Barr

Following the money in banking, economics, and Washington

Citi soars as feds cash out

December 7, 2010: 4:15 PM ET

It's time to break up Citigroup.

A day after the government announced the sale of its last shares of its biggest bank bailout of the 2008-2009 meltdown, Citi (C) shares rose 3% to their highest level since April.

Treasury's happy timing

Treasury raised $10 billion and change Tuesday by selling 2.4 billion Citi shares in an offering underwritten by Morgan Stanley. The deal left the feds, savaged recently for their massive lending to the financial sector during the crisis, sitting on a $12 billion profit from the Citi bailout.

Tuesday's rally means Citi shares posted a double-digit percentage gain over the year in which Treasury sold off what was at one point a 27% stake. So much for overwhelming the market.

Join the Conversation
About This Author
Colin Barr
Colin Barr
Senior Writer, Fortune

Colin Barr has covered finance for Fortune.com since November 2007. Previously he was a writer and editor for TheStreet.com, winning a 2006 Society of American Business Editors and Writers award for "The Five Dumbest Things on Wall Street," and for Dow Jones Newswires. He is a 1991 graduate of Penn State and lives in Port Washington, N.Y., with his wife Meena Bose and their two kids.

Email Colin
Current Issue
  • Give the gift of Fortune
  • Get the Fortune app
  • Subscribe
Powered by WordPress.com VIP.