The Thursday struck deals to sell down its Citigroup holdings and moved closer to unwinding the sizable ownership stake it received when it helped the company to survive the financial crisis.

The Treasury Department said it would cash out all of the trust preferred securities - received in exchange for the Treasury's agreement to share in losses on a certain pool of assets - for $2.25 billion. The sale is expected Tuesday.

The Treasury also announced that it would sell 1.5 billion shares of Citi's common stock, taking its ownership stake to 12.4% from 17.5%.

The shares have a liquidation price of $25 each and can be redeemed starting Oct. 30, 2015.

The Treasury invested $45 billion, not including a separate $5 billion guarantee that was never drawn down, in Citigroup as part of the Troubled Asset Relief Program.

Subscribe Now

Access to authoritative analysis and perspective and our data-driven report series.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.