By Jeffrey Sparshott
WASHINGTON--The Treasury Department Tuesday said it would sell
stakes it holds in seven banks that received bailout funds at the
height of the financial crisis, continuing the slow process of
winding down the Troubled Asset Relief Program.
More than three years after TARP's launch, the federal
government still owns stakes in 343 banks. Most are smaller,
community institutions that are unable to fully pay back the
government.
To recoup its investments, Treasury said it would auction shares
of Ameris Bancorp of Moultrie, Ga.; Farmers Capital Bank Corp. of
Frankfort, Ky.; First Capital Bancorp Inc. of Glen Allen, Va.;
First Defiance Financial Corp. of Defiance, Ohio; LNB Bancorp Inc.
of Lorain, Ohio; Taylor Capital Group Inc. of Rosemont, Ill.; and
United Bancorp Inc. of Ann Arbor, Mich.
Treasury said it plans to start the auctions around June 11.
Merrill Lynch, Pierce, Fenner & Smith Inc., and Sandler O'Neill
are auction agents.
More announcements on further auctions are expected in the
coming weeks. Treasury last month said it plans to sell most of its
remaining bank holdings--most likely at a loss on the original
investments.
Other institutions will repay Treasury or restructure their
investments.
While the remaining individual bank investments will likely show
small losses, Treasury has overall--through repayments, dividends
and sales--booked a profit on its TARP bank programs. Treasury
estimates it will make roughly $20 billion on its combined bank
investments.
Write to Jeffrey Sparshott at jeffrey.sparshott@dowjones.com
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