The Treasury Department today announced that it’s planning to sell some of the Citigroup “Trust Preferred Securities,” or “Trups,” it got in exchange for agreeing to share losses on $301 billion in the bank’s assets back in January 2009. Treasury said it won’t sell the securities for less than par value, and the proceeds from the sale will be chalked up as a profit for taxpayers.
Treasury said it owns roughly $2.2 billion worth of Citigroup Trups, but wouldn’t say what portion of the stake it would sell. The offering won’t include the $800 million in Trups owned by the FDIC.
The U.S. taxpayer still owns roughly 18 percent of Citigroup common stock, which is worth somewhere around $5 billion. Although Citi still operates under the specter of government ownership, it’s recently begun acting more like a regular bank, notably by upping salaries for its top employees and raising CEO Vikram Pandit’s pay package above $1, the amount Pandit made in both 2009 and 2010.