The U.S. Could Hold 34% of Citigroup
Citigroup has launched an exchange of shares worth 58 billion dollars, after which the U.S. government would get a participation of 34% in the third largest bank in the United States.
In the program, Citigroup will offer common shares in exchange for preferential securities of 33 billion dollars. Other preferential shares for 25 billion dollars, held by the U.S. Treasury, will be converted to common shares.
In February, U.S. Government had a package of 7.8% in preferential shares, worth 45 billion dollars of capital Citigroup. After this operation, consider that Citigroup could become one of the best capitalized banks in the world.
Meanwhile, the titles of Citigroup continued strong advances registered in the last few days, after the U.S. bank announced that started on profit and do not need additional capital from the government.