Dec 18 The U.S. Treasury plans to sell off its
shares in about two-thirds of the remaining banks that took
government bailout money during the financial crisis, the Wall
Street Journal reported, citing a person familiar with the
The Treasury hopes next year to clear out its portfolio of
banks that took bailout funds, including dozens of institutions
that have missed making dividend payments owed to the
government, the Journal said. The government still owns stakes
in 218 banks.
TARP bank programs in 2013 "will be substantially wound
down," the person told the paper. "There might still be some
positions especially in banks can repay but need a little
time to do so," the person said. ()
The Treasury could as soon as Tuesday announce that it will
sell the shares it holds in 50 institutions, some of which have
missed dividend payments, the Journal said, citing a person with
knowledge of the process.
The remaining institutions are expected to pay back or
restructure investments dating to the 2008 financial crisis,
though that part of the process may take longer, the paper said.
In total, these banks owe about $7.5 billion.
The U.S. Treasury could not immediately be reached for
comment by Reuters outside of regular U.S. business hours.
Over the years, the U.S. Treasury has been liquidating its
stakes in banks - including Bank of America and
Citigroup <C. n> - that received assistance through the
financial bailout program, known as the Troubled Asset Relief
More than 90 percent ($380 billion) of the $418 billion
disbursed for TARP has already been recovered to date through
repayments and other income.
Last week, the Treasury said it had completed its final sale
of common stock in American International Group,
reducing its shares in the insurer to zero four years after a
massive government bailout.