NEW YORK — Morgan Stanley and 13 other underwriters of the Treasury Department's sale of its remaining 2.4-billion-share stake in Citigroup Inc. will collect $42.3 million in fees from Citi, according to a regulatory filing Wednesday.
Morgan Stanley, the lead bookrunner of the transaction, handled 87%, or 2.1 billion Citigroup shares, in the sale, according to a filing with the Securities and Exchange Commission. Other underwriters on the deal included Bank of America Corp., UBS AG and Wells Fargo & Co.
The Treasury Department booked profits of $12 billion on its $45 billion investment in Citi, which nearly collapsed due to heavy losses during the height of the financial crisis and which received the largest bailout among banks.
In a prospectus filed on April 26, Citi disclosed that Morgan Stanley was eligible to receive $0.003 per share for Citi shares sold using electronic trading systems and $0.0175 per share for stock sales through other means.
Representatives for Morgan Stanley and Citigroup declined to comment.
Shares of Citigroup recently traded down 1% at $4.57. The company's stock is up 17% over the past year.