Citibank (NYSE: C) CEO Vikram Pandit said that he “wouldn’t be surprised” if the U.S. Treasury began winding down its 27% stake in Citigroup beginning next week.
The U.S. Treasury owns 7.7 billion shares of the financial giant that it received last September after converting Citibank’s $25 billion in bailout funds into common stock. If the U.S. Treasury were able to sell all of its shares at the current market price, it would make a $7.2 billion gain on its investment.
The news of the potential sale comes as a critical lock-up period ends on March 16th, which will allow the Treasury Department to begin selling its shares.
Pandit noted Thursday. “After that they’re free to do what they want to do,” Pandit said during a presentation to investors Thursday. “Given where the economy is and the market is, I wouldn’t be surprised if they’re actively thinking about doing something.”
