U.S. Department of the Treasury

WASHINGTON - The U.S. Department of the Treasury today announced its intention to dispose of certain warrant positions received in consideration for investments made under the Capital Purchase Program (CPP). At some point during the next several weeks, Treasury intends to conduct an auction to sell, in private transactions principally involving qualified institutional buyers, its warrant positions in a number of financial institutions that will be identified prior to the commencement of the auction.

 

Each of the financial institutions whose warrants may be privately placed via the auction has fully repurchased Treasury´s preferred stock investment. The proceeds of these sales will provide an additional return to the American taxpayer from Treasury´s investments in these financial institutions beyond the dividend payments it received on the related preferred stock.

 

Treasury intends to sell these warrant positions through private transactions. These sales will be executed using an auction to establish a clearing price for each warrant position by allowing appropriately qualified bidders to submit bids at or above a minimum price specified for each warrant position. Each warrant position will be sold to a single winning bidder. Treasury expects to conduct similar auctions in the future for other warrant positions it holds in financial institutions that have repaid CPP.