The U.S. Department of Treasury plans to put up for auction $3.29 million worth of preferred stock that it acquired in the Cayce-based bank holding company through the Troubled Asset Relief Program. Stock of 10 other banks will also be up for auction next week.
Published Oct. 18, 2012
The U.S. Department of Treasury said Thursday it plans to sell preferred stock investments of 11 smaller banks, including those of Cayce-based Congaree Bancshares, as it closes out the Troubled Asset Relief Program, or TARP.
The stock will be put up for auction on Monday or shortly after, the agency said.
The federal government owns $3.29 million worth of preferred stock of Congaree Bancshares, parent of Congaree State Bank.
Congaree and the other 10 banks have made an offer to the Treasury to buy their own preferred shares. The auction will allow other investors to bid on the shares, and possibly yield a greater return for taxpayers.
Although it became politically combustive as the country bailed out from the Great Recession, the TARP bank program has turned a profit for taxpayers.
To date, the Treasury has recovered $267 billion from TARP’s bank programs through repayments, dividends, interest and other income — compared to the $245 billion initially invested.
The Treasury still holds stock in 291 institutions that were acquired in 2008 and 2009 through TARP.