|Stockpickr: Who Owns Citigroup?|
( Citigroup and other stock prices brought current in this update, added Synovus downgrade.) NEW YORK ( TheStreet) -- Citigroup ( C) was among the losers of the financial sector Monday after the U.S. Treasury confirmed plans to unload its 27% stake in the bank. Citigroup shares lost ground afte the U.S. Treasury confirmed its plan to sell 7.7 billion shares of Citigroup common stock "over the course of 2010 subject to market conditions." Morgan Stanley ( MS) was named the underwriter and advisor on the sale.
While further details weren't discussed, the government is planning is to sell between 8% and 10% of average daily volume each day, with sales set to commence after Citigroup reports earnings on April 19, according to a CNBC report on Saturday.
Citigroup shares were falling by 13 cents, or 3%, to $4.18. Meanwhile, Bank of America ( BAC) inched higher after the bank said it has hired seven new corporate-banking hires, four of whom will be located in Asia, as part of an expansion of its Corporate Banking platform. Bank of America was lately up 0.2% to $17.93. Elsewhere, the Federal Deposit Insurance Corp. is not in agreement with Washington Mutual's ( WAMUQ.PK) bankruptcy reorganization plan, which includes a $1.4 billion tax refund to JPMorgan Chase ( JPM), according to a Wall Street Journal report. The FDIC has reversed its stand on supporting the refund as a U.S. law that created the tax refund forbids companies that received bailout funds from receiving such a payment, the newspaper reported. Washington Mutual Friday filed a Chapter 11 reorganization plan, although the bankruptcy court has yet to set a date for a hearing on the plan. JPMorgan shares were down 0.7% to $44.71, while Washington Mutual shares fell nearly 10% to 15 cents. Away from U.S. bank news, Allied Irish Banks ( AIB) plummeted by 16.6% to $3.71 after the bank confirmed that it is in discussions with the Irish Financial Regulator in order to meet its capital requirements. Earlier, several media reports said that Allied Irish Bank would need another capital injection, which could bring the taxpayer stake in the bank above 70%. Royal Bank of Scotland ( RBS) also traded lower after the bank agreed to sell its factoring business to GE Capital, a unit of General Electric ( GE). The transaction is expected to be completed by the third quarter. Terms of the sale weren't disclosed.
RBS Factoring GmbH, located in Germany, had gross assets of about 169 million euros ($226 million) as of Dec. 31, 2009, RBS said in a statement to the London Stock Exchange. RBS shares were lately down 1.4% to $13.42. Among analyst moves, FBR Capital Markets analyst Paul Miller downgraded shares of Synovus Financial ( SNV) to underperform from market perform, citing valuation. The stock was down 4.9% to $3.31. -- Written by Robert Holmes in Boston. Follow Robert Holmes on Twitter and become a fan of TheStreet.com on Facebook.