The Treasury Dept. is planning a massive sale. Want to get in on it? It’s a kind of garage sale. You know, where you get rid of unwanted junk that’s accumulated over the years. It seems their closets are filled with unused stocks of Citigroup Inc. and they’re eager to sell.
Working out the math here, they’re selling 2.4 billion shares at around $4.35 per share. So if you’re looking to drop over $10 billion over the weekend, I may know something you can do with it.
It seems to be win-win. Citigroup gets the government out of its hair. The government pulls its hands out of a risky business that it is incapable of dealing with. And the taxpayer gets a nice little profit on his investment. (All told for the Citigroup TARP money, the government expects to make around $12 billion.)
Citigroup, you might recall, took $45 billion in bailout money and handed over control of the company to the government. The Treasury has been getting involved from time to time, but is actually quite committed to getting back to the business of governing countries, not companies.
Let’s just make sure that the rest of the TARP funds get paid back and then maybe we’ll rest a little easier (and give Obama another chance?) but until then, keep a close watch on things. Or better yet, let me do it for you. You keep your eyes on the short sale prize instead. You’ll have a much better ROI than the government, guaranteed!