The Treasury Department will begin auctioning some of the remaining bank assets in its TARP Capital Purchase Program “on or about” July 23, according to a posting on the department's website.
The Treasury invested $245 billion initially in banks through the Troubled Asset Relief Program. So far, it has recovered $264 billion from those banks, including interest, but still has investments in 325 banks to divest, representing $11 billion in preferred stock and subordinated debentures, spokesman Matthew Anderson said in an interview.
Next week's auction will cover all of the government's holdings in 12 banks. The Treasury plans to use a Dutch auction, where the price is set after potential investors submit bids at specified increments.
Treasury has divested its investments in 20 banks over the past few months, and is considering pooled auctions in the fall for the remaining banks in which it has holdings. Treasury officials sent a letter to about 300 remaining banks notifying them that they will be included in the pool unless they opt out of the process.