Citigroup (NYSE:C) Finally to Get Government Off its Neck Completely

The U.S. Treasury announced Friday it will be selling its last stake in Citigroup (NYSE:C) via the warrants they still own in the giant financial institution.

Treasury said, "Apart from the warrants, Treasury has fully sold all other securities issued to it by Citigroup Inc., and each of the other financial institutions has fully repurchased Treasury´s preferred stock investment. The warrant sales anticipated during the current quarter, if consummated in full, would represent Treasury´s disposition of its remaining holdings in these financial institutions. The proceeds of these sales will provide an additional return to the American taxpayer from Treasury´s investments in these financial institutions beyond the dividend payments it received on the related preferred stock."

Those holding a warrant are given the right but not the requirement, to acquire or sell a security at a fixed price on or before a fixed date.

Treasury will sell the warrants via an auction, and it won't be known until then what they will get for the securities.

Citigroup was trading at $5.12, up $0.09, or 1.69 percent, as of 11:25 AM EST.