WASHINGTON (AP) - The U.S. government is selling $2.4 billion in bonds issued by Citigroup Inc. during the financial crisis in exchange for federal guarantees against the bank's possible losses.
The sale by the Federal Deposit Insurance Corp. ends the government's holdings in the third-largest U.S. bank. Citigroup said in a regulatory filing Monday that it won't receive any proceeds from the sale.
The FDIC received the bonds in November 2008 for guaranteeing hundreds of billions in potential losses on loans made by Citigroup. Citigroup was the only bank in which the FDIC took a stake during the crisis.
New York-based Citigroup was one of the hardest-hit banks during the crisis. It received a $45 billion bailout from the Treasury Department, one of the largest of the rescue program. Citigroup repaid the bailout.
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