By Jeffrey Sparshott 
 

WASHINGTON--The U.S. Treasury Department on Thursday said it plans to sell the shares it holds in seven banks that received assistance at the height of the financial crisis.

The Treasury has been steadily winding down the Troubled Asset Relief Program, or TARP. Still, nearly four years after the launch of financial rescue program, the federal government still owns stakes in 240 banks, mostly small institutions that have been unable to fully pay back the government. The banks owe Treasury roughly $8.6 billion.

Under TARP's Capital Purchase Program, Treasury invested cash in exchange for shares.

Treasury said it would sell stakes in:

--The Baraboo Bancorporation Inc. (BAOB) of Baraboo, Wisc.

--Central Community Corp. of Temple, Texas.

--Community West Bancshares (CWBC) of Goleta, Calif.

--First Advantage Bancshares Inc. of Coon Rapids, Minn.

--Manhattan Bancshares Inc. of Manhattan, Ill.

--Presidio Bank (PDOB) of San Francisco, Calif.

--Security Bancshares of Pulaski County, Inc., based in St. Robert, Mo.

Treasury plans to commence the auctions on Friday.

Write to Jeffrey Sparshott at jeffrey.sparshott@dowjones.com

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