U.S. government plans to sell shares based on a "pre-arranged' trading plan By Ronald D. Orol, MarketWatch WASHINGTON (MarketWatch) - The Treasury Department plans to sell 7.7 billion shares of Citigroup Inc. (C 4.28, -0.03, -0.66%) common stock throughout 2010 based on a "pre-arranged" plan, according to a statement from the agency Monday. The Treasury Department received the shares as part of a U.S. government investment in Citigroup that took place near the peak of the financial crisis that shook the economy to the brink in 2008. The U.S. government injected billions into Citigroup and other financial institutions as part of a $700 billion bank bailout. According to the release, the Treasury department intends to begin its sale of the shares based on a pre-arranged written trading plan, but did not indicate what that plan might be except to say that the sales will be dependent on "a number of factors.". The Treasury retained Morgan Stanley (MS 29.17, +0.32, +1.12%) , which also received bank bailout funds, as its capital markets advisor for the Citigroup common shares sale. In addition, the Treasury Added that its sale of common shares will not affect its holdings of Citigroup preferred securities or warrants it owns for common shares. Citi received a $45 billion bailout in two installments late in 2008 under the Troubled Asset Relief Program. The banking giant still owes $25 billion to the U.S. government, which owns a 27% share stake.

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