
Citi Stock Sale Nets $42M In Fees for Banks
NEW YORK (
) --
Citigroup
(C) - Get Report
will be paying
Morgan Stanley
(MS) - Get Report
and more than a dozen other Wall Street firms a total of $42 million in underwriting fees related to the U.S. Treasury Department's sale of Citi shares this week, according to a regulatory filing.
The group of underwriters, led by Morgan Stanley, received 1.75 cents worth of commissions and discounts for each of the 2.4 billion shares of common stock the Treasury unloaded this week. Citi disclosed the information in a
Securities and Exchange
filing on Wednesday after the deal had closed.
Morgan Stanley received the vast majority of the offering, with 2.1 billion shares. The underwriters below Morgan received an average of 24 million shares, in a range of 350,000 to 67 million.
In order of the amount of shares allotted, the underwriters were: Loop Capital Markets,
Bank of America's
(BAC) - Get Report
Merrill Lynch division,
UBS
(USB) - Get Report
,
Wells Fargo
(WFC) - Get Report
, Kaufman Bros., Great Pacific Fixed Income Securities, Guzman & Co., M.R. Beal & Co., Wm Smith & Co., The Williams Capital Group, Cabrera Capital Markets, M. Ramsey King Securities and Valdés and Moreno.
The Treasury received an average of $4.35 per share for this offering, with total proceeds of $10.5 billion. For its whole $45 billion investment in Citi, it received a $12 billion profit, not including related warrants and a stake in trust preferred securities held by the
Federal Deposit Insurance Corp.
In recent trading, Citi was down 0.5% at $4.59, following a remarkable climb from $4.45 at the start of the week as the stock offer took place.
-- Written by Lauren Tara LaCapra in New York
.
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