Treasury Auctioning Citigroup (NYSE:C) TARP Warrants Tuesday

Warrants received by the Treasury from Citigroup (NYSE:C) during the financial crisis will be auctioned on Tuesday, with Deutsche Bank AG (NYSE:DB) being the auction agent in the sale.

The Treasury said in its statement, “The proceeds of this sale will provide an additional return to the American taxpayer from Treasury’s investment in the company beyond the dividend payments it received on the related preferred stock and the profit received from the sale of shares of common stock and trust preferred securities of the company.”

The statement said 0n Tuesday the Treasury will sell 255 million “A” warrants with a minimum bid price of 60 cents and 210 million “B” warrants with a minimum bid of 15 cents.

In order to received taxpayer dollars, the Treasury required warrants as a form of compensation. Holders of the warrants had the option of acquiring shares at a set price for a period of 10 years.

Lenders also have an option to buy the warrants back if they choose.

Citigroup was trading at $4.8750, down $0.015, or 0.31 percent, as of 12:36 PM EST.