Treasury not to sell Citibank holdings

NEW YORK: Citigroup Inc, the last of the four largest US banks to seek funds to exit a taxpayer bailout, raised $17 billion by selling stock for a price so low that the US delayed plans to shrink its one-third stake in the lender.

Citigroup sold 5.4 billion shares at $3.15 apiece, less than the $3.25 the government paid when it acquired its stake in September. The New York-based bank said the Treasury won't sell any of its shares for at least 90 days.

Investors demanded a bigger discount from Citigroup than Bank of America Corp or Wells Fargo & Co, which together raised more than $31 billion this month to exit the Troubled Asset Relief Program. Wells Fargo, which trumped Citigroup's bid to buy Wachovia Corp last year, leapfrogged its rival by completing a $12.25 billion share sale Dec 15. JPMorgan Chase & Co repaid $25 billion in June.