U.S. Treasury announces to sell 465 mln Citigroup warrants

The U.S. Department of Treasury announced on Monday in a statement that it would sell about 465 million warrants it held from Citigroup Inc., a further exit step from the government's massive financial bailout efforts during the financial crisis.

The U.S. government invested a total of 45 billion U.S. dollars in Citigroup through the Troubled Asset Relief Program (TARP), the unpopular 700 billion dollars financial rescue program which started in late 2008.

The auction of the Citigroup warrants was scheduled to take place on Tuesday. The proceeds of this sale would provide an additional return to U.S. taxpayers, according to the statement.

The Citigroup warrants were divided into two types, as 255 million warrants were classified as "A Warrants" with a minimum bid price of 60 U.S. cents per warrant, and 210 million warrants classified as "B Warrants" with a minimum bid price of 15 cents per warrant, noted the statement.

Warrants are financial instruments that allow the holders to buy stock in the future at a fixed price.

[Source: Xinhua, Washington, 24Jan11]

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