Parsons: Citi Will Repay TARP ... Someday
NEW YORK (
) -- The long, dark veil hovering over
Citigroup's
(C) - Get Report
plans to repay its federal bailout funds was lifted today ... sort of ... well, not really.
According to a report from
Bloomberg
, Citigroup Chairman Richard Parsons said that not only will Citigroup be able to repay billions received from the government's Troubled Asset Relief Program, but taxpayers can expect a tidy gift in return for the trouble.
"I have every confidence that Citi will be able to exit the TARP program, and actually be able to give the American taxpayer a decent return," Parsons said in an interview with
Bloomberg
.
Of course, Parsons couldn't let things stand at that, and brought the veil down a bit in his next breath. "I can't put a timeframe on it, but I'm very confident we'll get there," he added, according to the report.
To recap, $45 billion worth of federal funds were pumped into Citigroup last fall, with the banking behemoth converting $25 billion into a 34% ownership right for the U.S. government. Questions of how and when Citigroup plans to exit the TARP program have lingered for some time.
Parsons made the comments on Monday, ahead of
President Barack Obama's speech at Federal Hall on Wall Street.
Citigroup shares were changing hands at $4.47, down 14 cents in the afternoon. Elsewhere among the financials,
Bank of America
(BAC) - Get Report
and
Morgan Stanley
(MS) - Get Report
were moving lower by 0.5% and 1.2%.
Meanwhile,
Goldman Sachs
(GS) - Get Report
was adding 1.2%, or $2.08, at $176.78.
-- Written by Sung Moss in New York
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