According to the authorities, an estimated 255 million warrants were sold at $1.01 each while a second offering of approximately 210 million warrants were priced at $0.26 each.
If the investment bank warrants fetch the anticipated $312 million, then the US Treasury will have generated a $12.2 billion profit on its investment in the bank as part of the Troubled Asset Relief Program (TARP).
Tim Massad, Treasury's acting assistant secretary for financial stability, said: âOur investment in Citigroup has produced a significant profit for taxpayers.
âAs we exit our investments in private companies and recover taxpayer dollars, it's clear that the cost of the TARP program will be a fraction of what many had once feared during the depths of the crisis.â
The US government invested a total of $45 million into Citigroup via TARP - it has subsequently recovered the sum while is expecting to make the additional $12.2 billion profit.
It has now made a total of $410 billion in TARP disbursements.
By Jim Ottewill