Treasury announces plan to auction CPP investments in six institutions

140px-US-DeptOfTheTreasury-Seal.svgThe U.S. Treasury announced last week its intention to sell several preferred stock and subordinated debt Capital Purchase Program investments as part of an ongoing effort to recover its remaining investments under the Troubled Asset Relief Program.

The Treasury will hold auctions for all of its preferred stock and CPP securities in Missouri-based Calvert Financial Corp. and First Banks, as well as Minnesota-based Community Pride Bank Corp., Georgia-based First Intercontinental Bank, Indiana-based Universal Bancorp and Virginia Company Bank.

The auctions are slated to be held on or near Monday and will close on Aug. 1.

In December, the Treasury announced it would hold a series of auctions that include CPP securities as part of an overall strategy to wind down remaining TARP investments in a way that ensures financial stability and protects taxpayers.

To date, the Treasury has recovered $271 billion from TARP’s bank programs, compared to the $245 billion initially invested. The Treasury has remaining outstanding CPP investments in 129 institutions.

Additionally, the Treasury said it plans to use a combined strategy of restructuring, repayment and sales to manage and recover its remaining CPP investments.

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