Citigroup TARP warrants heading to zero

|About: Citigroup Inc. (C)|By:, SA News Editor

A lot of people have made a lot of money buying TARP warrants issued by the large financials in conjunction with their financial crisis bailouts, but those issued by Citigroup (C +0.4%) are turning out to be poor investments at the moment.

The A warrants struck at $106.10 and expiring in January 2019 were  originally auctioned off by Treasury at $1.01 each in late 2011. They're now going for just $0.64 as the stock ($47.80 at last check) does little this year and the erosion of the time value picks up pace.

The B warrants struck at $178.50 and expiring in October 2018 are down to $0.0345 vs. their auction price of around $0.80.