By Vicki Needham - 05/26/10 08:40 PM EDT
The Treasury Department sold 19.5 percent of its shares in Citigroup, garnering a $6.2 billion profit from the sale for taxpayers.
Treasury sold 1.5 billion of its 7.7 billion in shares of Citigroup common stock, acquired last summer in an effort to strengthen Citigroup's capital base, under a trading plan with Morgan Stanley, according to a statement on Wednesday.
The sale reduces the federal government's stake in Citigroup from 27 percent to 21 percent. Treasury converted $25 billion in bailout funds to shares valued at $3.25.
Under the plan, Morgan Stanley is expected to sell another 1.5 billion shares of the Treasury's remaining 6.2 billion shares in Citigroup by June 30, Treasury said in a release.