The Treasury will sell its stock in Citigroup to "achieve the best possible price for the American public," the head of the government's financial bailout program said on Thursday.
Herbert Allison, Treasury assistant secretary for financial stability, told lawmakers that sales would commence after a 90 day lock-up period expires.
He also told a panel of House of Representatives Oversight and Government Reform Committee that the government was showing a "small profit" on its 34 percent stake in Citigroup based on the share value and dividends that were accruing.
The Treasury decided not to sell any Citigroup shares alongside the bank's own stock offering because the $3.15 offering price was below the $3.25 per share price for the Treasury's investment. Citigroup shares were down 6.4 percent at $3.23 in late morning trade on Thursday.
Allison also said the Treasury's investments in American International Group, General Motors Corp and Chrysler were now valued at about a $60 billion loss to the government.
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