Citigroup earns 3x as much for investors

Bloomberg is reporting that Citi earned 7.5% for the $45bn investment made by the government on behalf of taxpayers as part of the bailout of financial institutions.  This exceeds the return provided by investments made in the S&P 500 by 300%, with the index earning only 2.4% since the investment was made in October.

From Bloomberg:

The government pumped $25 billion in rescue funds into the New York-based bank in October and another $20 billion a month later. Dividends on preferred shares linked to that money total about $1.6 billion, according to data compiled by Bloomberg. Returns have also been boosted by the tripling of the stock price since March, which will benefit the government through the planned conversion of as much as $25 billion of its preferred shares into common stock.

Read the rest HERE.


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