Citigroup repays $20 billion to US

Citigroup Inc repaid $20 billion to the United States, as the bank works to reduce government involvement in its compensation practices. The bank sold $17 billion in common shares and $3.5 billion in convertible notes to help raise capital to repay the government.

Citigroup Inc repaid $20 billion to the United States, as the bank works to reduce government involvement in its compensation practices.

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The bank sold $17 billion in common shares and $3.5 billion in convertible notes to help raise capital to repay the government.

Citigroup received $45 billion under the US Troubled Asset Relief Program last year over two separate bailouts. In a third bailout this year, the US agreed to swap the Citigroup preferred shares it owned into $25 billion of common stock and another $20 billion of more debt-like securities.

Citigroup has repaid the $20 billion, but taxpayers still own common stock in the bank that is now worth about $25.2 billion.

The US had planned to sell up to $5 billion of that stock alongside Citigroup's share offering, but demand for the bank's sale was so low that any government sale would have resulted in a loss for taxpayers.

Citigroup and the US also ended an agreement to guarantee a roughly $250 billion portfolio of assets against losses.

"Citigroup is no longer a recipient of 'exceptional financial assistance,'" Feinberg wrote in a letter to Citigroup that was released publicly.