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RS for CITIBANK: READ: Treasury Votes for Reverse Stock Split Citigroup (NYSE: C)

http://www.americanbankingnews.com/2010/04/26/u-s-treasury-votes-for-reverse-stock-split-citigroup-nyse-c/

The U.S. Treasury Department voted with its 7.7 billion shares that it owns in Citigroup (NYSE: C) last week at the company’s annual share holders meeting for the company to have a reverse stock split.

The Treasury Department acquired its massive pile of stock in the company when it provided emergency capital to Citigroup (NYSE: C) during the financial crisis, and noted that it was “a reluctant shareholder (that) intends to dispose of its TARP (Troubled Asset Relief Program) investments as quickly as practicable.”

The Treasury Department backed all 15 of the directors that were nominated to Citigroup’s board and voted for two proposals. One of the proposals will permit the company to issues common shares to settle $1.7 billion of “common stock equivalent” awards to employees in lieu of cash incentive pay.

The other proposal that the Treasury Department supported was to allow a reverse stock split. The Treasury Department said in a statement that “will address the fact that the company has a much larger number of shares outstanding than is necessary to ensure adequate trading liquidity.”

The Treasury said that it voted proportionally on a “say on pay” resolution that would give the shareholders the right to cast a non-binding vote on whether or not they approve Citigroup’s 2009 executive compensation.

“The Treasury strongly supports the concept that shareholders should have the ability to vote on executive compensation, and included the ’say on pay’ requirement in its regulatory reform legislative proposal,” the Treasury said in a statement.