WASHINGTON – The Treasury Department announced plans Tuesday to unload over the next several weeks warrants it received in insurers Hartford Financial (NYSE:HIG) and Lincoln National (NYSE:LNC) as part of the controversial TARP bailout.
If completed, the sales would complete the government’s exit of its holdings in these financial institutions, each of which already paid back their TARP loans. The proceeds from the auctions will go towards repaying U.S. taxpayers for the bailout, which was used in 2008 to stabilize the financial system.
The Treasury Department owns 52 million warrants in Hartford and 13 million warrants in Lincoln. The government did not specifically when it plans to sell its stakes, only that the sales will occur over the “next several weeks.”
Deutsche Bank (NYSE:DB) is running the auction for the Treasury and serving as the sole bookrunning manager.