US Treasury To Sell Warrant Positions In Four Banks
February 18 2010 - 4:35PM
Dow Jones News
The U.S. Treasury Department intends to sell warrant positions
in four banks, including Bank of America Corp. (BAC).
The Treasury on Thursday announced its intention to dispose of
warrants received in consideration of investments made under
government aid programs for lenders.
The Capital Purchase Program and Targeted Investment Program
were started by the Treasury to assist the financial system after
the Wall Street meltdown.
The Treasury said that, over the next month, it will conduct
auctions to sell warrant positions in Bank of America, Washington
Federal Inc. (WFSL), Texas Capital Bancshares Inc. (TCBI) and
Signature Bank (SBNY).
"Each of these banks has fully repurchased Treasury's preferred
stock investment," the department said. "The warrant sales
anticipated over the next month, if consummated in full, would
represent Treasury's disposition of its remaining holdings in these
banks."
Treasury said the sales will provide an additional return to
taxpayers beyond dividends it got on the preferred stock.
The warrants will be sold through public offerings using a
modified Dutch auction methodology that sets a market price by
letting investors submit bids at specified increments above a
minimum price established for each auction.
-By Jeff Bater, Dow Jones Newswires; 202-862-9249;
jeff.bater@dowjones.com
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