The Federal Deposit Insurance Corp. is selling the last of the Citigroup (NYSE:C) stake that the U.S. government acquired during the financial crisis.
The FDIC is offering $2.4 billion in Citi notes, according to a filing the bank posted with the Securities and Exchange Commission this week. The government agency acquired the notes in January 2009 as part of an agreement to share in losses on $301 billion of troubled Citi assets. The emergency assistance was jointly offered by the FDIC, the Federal Reserve Board, and the Treasury Department.
Citi will not receive any proceeds from the sale of the notes, which carry maturity dates of 2025 and 2043.
When the sale is complete, the U.S. government will no longer hold any securities issued by Citi as a result of the financial crisis. The Treasury received $894 million from the sale of Citi debt earlier this year.
Citi, the third-largest U.S. bank, was hit hard by the economic downturn. It received a $45 billion bailout from the Treasury under the Troubled Asset Relief Program. It repaid the Tarp funds in December 2009.