Stocks/mutual funds

Treasury to auction more CPP securities in TARP wind-down

140px-US-DeptOfTheTreasury-Seal.svgThe U.S. Treasury announced more CPP securities auctions on Wednesday in six institutions—part of its strategy to wind down Troubled Assets Relief Program assets.

Centrue Financial Corp. in Ottowa, Ill., will handle 25,266 shares at $325 per share, with aggregate gross proceeds totaling $8.21 million. DeSoto County Bank in Mississippi is auctioning approximately 2,700 shares, with total aggregate gross proceeds at $2.25 million.

Fixed First Banks in Missouri will sell 11,669 shares at $551.59, RCB Financial Corp. in Georgia will sell approximately 9,200 shares in cumulative preferred stock and Reliance Bancshares in Missouri will sell 42,000 shares totaling $42.42 million. Severn Bancorp in Maryland will auction 23,393 shares at $998.90 each.

To date, the Treasury has recovered nearly $273 billion from TARP programs through repayments, interest, dividends and other income. Approximately $2 billion of repayments were refinanced under the Small Business Lending Fund, which was created to allow CPP institutions to repay TARP funds by borrowing under the program, reports.

Most of the recovered funds have originated from repayments and dividends, as well as the sale of warrants. CPP stock auctions comprise less than one percent of the recovered assets. Auction closings are expected on or around Wednesday, Sept. 25.

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