Vikram Pandit to Citi Employees: We are Repaying TARP, We are Well Capitalized

Published on Monday, 14 December 2009 11:03 Written by Danny Miller

New York, Dec 14^th (TradersHuddle.com) – Citigroup (NYSE:C) CEO Vikram Pandit said to bank employees that Citigroup was announcing a series of transactions with the purpose of repaying $20 billion of TARP and terminating the asset guarantee that the company received from the U.S. government.

Vikram also mentioned that the Treasury also announced its intention to sell its ownership in Citi stock in the coming months.

Vikram praised employee accomplishments by getting the house in order, stating the fact that the bank is in a very strong capital position, efficient and focused on its clients with a clear strategy for the future.

Shares of Citigroup (NYSE:C) were under pressure this morning, as this announcement although good for the long term, it results in dilution for current stockholders, also considering the fact that the Treasury will be selling its stake it will be resulting in a steady stream of supply impacting the stock overall performance.