NEW YORK (AP) — Citigroup Inc. said Wednesday it has repaid the $20 billion in bailout money it received from the government.
Citi said it funded the previously announced repayment with a recent stock offering that raised $20.5 billion. The offering included $17 billion in common shares and $3.5 billion in what are called tangible equity units, which can be converted into common stock at a later date.
Citi said it also ended its $7.1 billion loss-sharing agreement with the government, which protected the company against defaults on some risky investments. To end the program, the government canceled $1.8 billion of what are called trust preferred securities, but still holds $5.3 billion in those securities, which are a type of debt instrument.
New York-based Citi was among the hundreds of banks that received bailout money through the Troubled Asset Relief Program. The Treasury Department extended a total of about $453 billion to banks, insurers, automakers and other companies under the program. The government has said it expects total bank repayments could reach $175 billion by the end of next year.
Repayment of the money frees banks from government restrictions, such as executive pay limitations.
Earlier Wednesday, Wells Fargo & Co. announced that it had repaid the $25 billion it received in bailout funds. The San Francisco-based bank said a public stock offering that raised $12.25 billion helped fund the repayment.
Bank of America, based in Charlotte, N.C., completed its repayment of the $45 billion it owed U.S. taxpayers earlier this month.
The Treasury Department continues to hold warrants to buy Citi stock issued as part of the TARP investment. The government plans to sell its nearly 34 percent stake in the bank over the next year.
Shares of Citigroup fell 5 cents to $3.29 Wednesday.
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