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VOL. 126 | NO. 21 | Tuesday, February 01, 2011

Treasury Announces Bank Warrant Auction

MARTIN CRUTSINGER | AP Economics Writer

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WASHINGTON (AP) – The Treasury Department says this week it will auction off warrants it received from Boston Private Financial Holdings Inc., the latest effort to recoup the costs of the $700 billion financial bailout.

The sale of 2.89 million warrants from the Boston-based financial institution will take place on Tuesday with the results announced Wednesday, Treasury said. It set a minimum bid price of $1.40 per warrant.

Boston Financial received $154 million in support in November 2008. It repaid back $50 million in January 2010 and the remaining $104 million last June. Sales of the warrants will sever the company's remaining ties with the government bailout effort.

Purchase of the warrants gives the holder the right to buy Boston Financial common stock at a fixed price. Purchase of the warrants will give the holder the right to buy Boston Financial common stock at $8 per share through November 2018.

Boston Financial stock closed at $6.72 on Friday and over the past 52 weeks it has traded in a range of $4.67 to $8.97.

Last week, the government received $312.2 million from the sale of warrants it held in Citigroup. The bank received $45 billion bailout at the height of the financial crisis.

In addition to the sale of warrants in Citigroup and Boston Financial, Treasury has also said it will sell warrants during the first quarter of this year that it holds in Wintrust Financial Corp., which is based in Lake Forest, Ill.

Copyright 2011 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

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RECORD TOTALS DAY WEEK YEAR
PROPERTY SALES 109 433 13,330
MORTGAGES 114 591 17,349
FORECLOSURE NOTICES 11 93 3,391
BUILDING PERMITS 0 366 30,930
BANKRUPTCIES 76 352 12,695
BUSINESS LICENSES 21 108 4,597
UTILITY CONNECTIONS 77 564 19,457
MARRIAGE LICENSES 29 151 4,060

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