The U.S. Department of the Treasury today released the following statement regarding Citigroup's announcement to repay taxpayers for the assistance provided by the government:
"We are pleased that Citigroup is moving ahead with plans to pay the taxpayers back. Treasury has repeatedly stated that the United States never intended to be a long term shareholder in private companies. As banks replace Treasury investments with private capital, confidence in the financial system increases, government‘s unprecedented involvement in the private sector diminishes, and taxpayers are made whole.
"While much work lies ahead to improve lending and spur job creation, today’s announcement by Citigroup takes us another step in the right direction. In conjunction with Citigroup's announced equity offering, Treasury intends to sell up to $5 billion of its common equity position in Citigroup through a secondary offering. Treasury expects to sell the remainder of its shares in an orderly fashion within six-12 months from today subject to an initial 45-day 'lock-up' period after the secondary offering.
"We also welcome Citigroup’s continued commitment to strengthen lending and their on-going efforts to modify mortgages and keep more families in their homes."
