The U.S. plans to sell a portion of the $2.2 billion in trust-preferred securities it obtained from Citigroup Inc. when it pledged to share in losses on a pool of the rescued bank's assets.
Selling the securities is the latest step by the government to unwind the sizable ownership stake it received when it helped Citi to survive the financial crisis.
The Treasury Department plans to begin selling the securities this week. It remains unclear exactly what price the securities will be sold for or how much of its holdings the Treasury will sell.
The trust-preferred securities are separate from common stock the Treasury got with its bailout of Citigroup. The Treasury has been working to sell these shares in the past several months. It currently owns about 18% of Citigroup's shares.
