Yesterday, Treasury announced its intention to dispose of several additional warrant positions in financial institutions that it received under the Capital Purchase Program (CPP) and the Targeted Investment Program (TIP). Over the next month, Treasury intends to conduct auctions to sell its warrant positions in Bank of America Corporation, Washington Federal, Inc., Texas Capital Bancshares, Inc., and Signature Bank.
Each of these banks has fully repurchased Treasury´s preferred stock investment. 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 plans to sell the warrants through public offering using a modified Dutch auction methodology, which establishes a market price by allowing investors to submit bids at specified increments above a minimum price specified for each auction. Treasury expects to conduct similar auctions in the future for other warrant positions it holds in banks that have repaid CPP.