REPUTATIONAL DISCOUNT

WASHINGTON POST--The Treasury Department announced Monday that it had selected Morgan Stanley to handle the sale of its massive stake in Citigroup, spurning an offer from Goldman Sachs, which was willing to do the job at virtually no cost to the federal government.

Some government officials had concerns about giving such a prominent deal to Goldman Sachs because the firm has come under fire from lawmakers and the news media for its role in the financial crisis, according to a government source. The source spoke on condition of anonymity because of the sensitivity of the matter, and Goldman Sachs declined to comment.

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