U.S. Treasury Sticks With the Company Line on Citigroup (C) Shareholder Vote

The U.S. Treasury said it voted its 7.7 billion Citigroup (NYSE: C) shares in favor of all 15 director nominees at the company's annual meeting, according to a statement from Treasury.

In addition, the Treasury also voted in favor of allowing the bank to issue common stock to settle employee compensation agreements worth $1.7 billion.

Getting the most chatter on the street today, was that the Treasury also voted in favor of an extension of the Board's authority to effect a reverse stock split.

On September 2, 2009, Citigroup stockholders approved a plan to give authority to the board to effect reverse stock split of all issued and outstanding shares of our common stock at one of seven reverse stock split ratios, 1-for-2, 1-for-5, 1-for-10, 1-for-15, 1-for-20, 1-for-25 or 1-for-30. The current stock split authorization ends June 30, 2010. The board was asking shareholders approve an extension of this authorization until June 30, 2011.

On the other proposals, including "say on pay", the Treasury voted its shares proportionately it said.

Treasury also reiterated that it plans to sell its 7.7 billion shares "as quickly as practicable."

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