By Jeffrey Sparshott
WASHINGTON--The U.S. Treasury Department said Monday it started
to sell off stakes it holds in 11 banks that received rescue funds
at the height of the financial crisis, continuing the process of
winding down the bailout launched in 2008.
The auctions started Monday morning and will close at 6:30 p.m.
EDT on Tuesday.
Nearly four years after the launch of the Troubled Asset Relief
Program, or TARP, the Treasury continues to hold stakes in 291
financial institutions.
The Treasury is auctioning its shares in:
--Blue Ridge Bancshares Inc. of Independence, Mo. (which
received $12 million from TARP's Capital Purchase Program)
--First Gothenburg Bancshares Inc., Gothenburg, Neb. ($7.57
million)
--Blackhawk Bancorp Inc. (BHWB), Beloit, Wis. ($10 million)
--Germantown Capital Corp., Germantown, Tenn. ($4.97
million)
--CenterBank, Milford, Ohio ($2.25 million)
--Oak Ridge Financial Services Inc. (BKOR), Oak Ridge, N.C.
($7.7 million)
--Congaree Bancshares Inc. (CNRB), Cayce, S.C. ($3.29
million)
--Metro City Bank, Doraville, Ga. ($7.7 million)
--Peoples Bancshares of TN Inc., Madisonville, Tenn. ($3.9
million)
--The Little Bank (LTLB) Inc., Kinston, N.C. ($7.5 million)
--HomeTown Bankshares Corp. (HMTA), Roanoke, Va. ($10
million)
Each of the 11 banks has submitted an offer to the Treasury to
buy back their own preferred shares, but other investors will be
able to place bids at the auction.
TARP, which also included rescues in the housing, auto and
insurance sectors, will likely end up costing taxpayers. Earlier
this month, the Congressional Budget Office estimated the final
price tag at $24 billion, down from an estimate of $32 billion made
in the spring. The lower cost was due largely to an increase in
market value of the government's investments American International
Group Inc. (AIG).
--Eric Morath contributed to this article.
Write to Jeffrey Sparshott at
jeffrey.sparshott@dowjones.com.