Securities Law Prof Blog

Editor: Eric C. Chaffee
Univ. of Toledo College of Law

Wednesday, March 14, 2012

Treasury Announces Plans to Sell Off TARP Investments

Today Treasury announced that as part of its ongoing efforts to explore options for the management and ultimate recovery of its remaining Capital Purchase Program (CPP) investments under the Troubled Asset Relief Program (TARP), it intented to sell several preferred stock CPP investments.  Treasury intends to conduct public auctions to sell its preferred stock positions in the following six banks:
•Banner Corporation, Walla Walla, WA (“Banner”)
•First Financial Holdings Inc., Charleston, SC (“First Financial”)
•MainSource Financial Group, Inc., Greensburg, IN (“MainSource”)
•Seacoast Banking Corporation of Florida, Stuart, FL (“Seacoast”)
•Wilshire Bancorp, Inc., Los Angeles, CA (“Wilshire”)
•WSFS Financial Corporation, Wilmington, DE (“WSFS”)

Treasury expects to conduct the auctions, which will be registered public offerings, on or about March 26, 2012.

In addition, on March 8, Treasury announced that it agreed to sell 206,896,552 shares of its American International Group (AIG) common stock at $29.00 per share.  The aggregate proceeds to Treasury from the common stock offering are expected to be approximately $6.0 billion.  As part of Treasury’s common stock offering, AIG agreed to purchase 103,448,276 shares at the offering price of $29.00 per share – representing $3.0 billion of Treasury’s expected proceeds from the sale.

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