U.S. Treasury To Sell Citigroup Warrants

The U.S. Treasury announced today that it intends to sell the remaining Citigroup warrants it owns sometime this quarter.  It intends to sell these warrants in a public offering using a modified Dutch auction.  Deutsche Bank is handling the sale.

The Treasury also intends to dispose of its warrants in Boston Private Financial Holdings and Wintrust Financial.

Read the U.S. Treasury press release here>>

Read Bloomberg coverage here>> 

East West Bancorp pays back TARP funds

East West Bancorp announced that they have fully paid back the preferred shares issued as part of TARP.  The bank repurchased $306.5 million of preferred shares and made a final dividend payment of $1.8 million to the U.S. Treasury.  They intend to repurchase the related warrant from the U.S. Treasury in the first quarter of 2011.

Read the press release here >>

Read the L.A. Times article here >>

WSJ:U.S. Claws Back Pay From Wilmington Trust CEO

The Wall Street Journal reports that Wilmington Trust recently took back more than $1.8 million in compensation from its CEO.

In an emailed statement, a company spokesman said: "Mr. Foley and the board determined that it was necessary to adjust elements of his compensation in order to be in full compliance with regulations covering compensation at institutions that have received TARP funds."

Read the WSJ article here >>

Read the Bloomberg article here >>

Philadelphia Inquirer: Small Philly banks not in a hurry to repay TARP funds

The Philadelphia Inquirer has an article which talks about some smaller banks in the Philadelphia area that are in no hurry to repay their TARP funds.  One reason cited was that the 5% dividend that the banks have to pay is a bargain compared to their cost of capital.

Read the Philadelphia Inquirer article here >>

WSJ.com: Bailed-Out Banks Slip Toward Failure

The Wall Street Journal reports that there are nearly 100 banks that received TARP funds that are in jeopardy of failing.  This number is up from 86 in the second quarter.

Read the WSJ article here >>

Washington Post: Treasury Department steps up monitoring of banks that miss TARP payments

The Washington Post has an article today talking about how the Treasury Department has started to send officials to monitor board meetings of up to 19 banks that have missed six or more TARP dividend payments.

Read the Washington Post article >>

Geithner Testifies Before the Congressional Oversight Panel

Treasury Secretary Timothy Geithner testified before the Congressional Oversight Panel this morning about the government's response to the financial crisis.

View the video of the testimony here or read his written testimony here.

Read coverage from the Wall Street Journal here.