Treasury prepares sale of Citigroup stock

The Treasury Department on Monday announced it has filed the proper papers with the Securities and Exchange Commission to sell its 7.7 billion shares of Citigroup common stock. 

Morgan Stanley is the Department's sales agent for the stock and has the authority to sell up to 1.5 billion shares. The bank must also provide opportunities for small broker-dealers to participate in the sale, which includes shops owned by minorities and women. Treasury received common shares of Citigroup last summer to shore up the bank's capital base. The Department exchanged the $25 billion in preferred stock it received in connection with the bank participating in the Capital Purchase Program for common shares at a price of $3.25 per share.

Treasury's SEC filing does not cover the Department's holdings of Citigroup trust preferred securities or warrants for its common stock, which will be disposed of separately.