Treasury gets 12 billion of outstanding Citi (CNN)

Taxpayers scored a bonus of $ 12 billion that the Government washed his hands of one of its biggest orchestrated, Citigroup.

The Treasury Department said Monday afternoon that it expected 2.4 billion Citi (C) sell stock in an underwritten offering. Later in the evening, the Treasury Board stated that the offer was $4.35 per share - price giving the Government a profit of 12 billion over its $ 45 billion Citi bailout.

Closing time

The Government paid the equivalent of $3.25 per share for its participation in the No. 3 u.s. Bank by assets. Count of revenues from the sale of stock, dividends and interest on loans rescue, the Government received 57 billion in compensation for replenishment of Citi, said the Treasury Board.

"Sell the remaining issue ensures that the taxpayers will be book profit health on their investment in Citigroup," said Linus Wilson, Assistant Professor finance at the University of Louisiana at Lafayette and a long bailout tracker date.

The announcement comes at the right time for the Government with policy makers to take their last bailout beating courtesy of newly released loans crisis Federal Reserve details. Although the Bank grants are proved much less expensive that first estimates suggested they remain deeply unpopular due to a failure to empower major crisis - Government - bankers for their misssteps actors.

Also, it is less than one year following the Citi and Government reached an agreement that erased the Citigroup way to repay the Government during the darkest days of the end of 2008 and early 2009 massive bailout package. This market also provides the Federal Government within the week next to complement their share sales.

The Government has Citi 45 billion in loans help property injured during the crisis. Many last December with injury early in 2009 for a large part of the TARP Government preferred shares convert to common shares, left, the Federal Government with a stunning actions of 7.7 billion Citi, representing a 27% stake.

Last spring, the Treasury Board began to dribble the shares on the market. The Government has succeeded in reducing its participation of approximately two-thirds without affecting the price of the shares, Wilson research has shown.

The slower than expected sales pace leaving the Federal Government with a sizable piece Citi shares as transaction crafts birthday last year. But Citi shares have actually increased since one month, despite declining among the concerns on the solvency of Europe and legal exposure of the banking industry for what is called foreclosuregate Bank stock index.

Wilson said that Government averaged nearly $4 a share on sales of stocks of the Citi in October and, since the Federal Government were able to sell an addition shares of 900 million at a time when the market price has generally increased.

Government will be always good warrants for common shares of Citigroup which have been issued for the participation of Citigroup in the Treasury Board programs, said the Treasury Board, and the Government may obtain up to 800 million in securities trust preferred unless the Federal Deposit Insurance Corp. loses money Citigroup debt under the liquidity guarantee program temporary of the backup.

But overall, Citi and the Federal Government will be free for the first time since the crisis, which is an arrangement that everyone can be satisfied.

"I am delighted that US Treasury took action today to keep its promises to the Citigroup investors and managers of selling game of taxpayers by 14 December 2010," said Wilson.