CHARLOTTESVILLE, Va. – The Treasury Dept. disposed of its entire investment in 10 of the 12 banks that were selected for the fourth TARP auction, according to the auction results released July 27.

SNL Financial here reported that before fees, the Treasury lost about $55.2 million on the $303.7 million in principal amount of TARP securities sold. However, the $59.2 million in dividend and interest payments received from the 12 banks as of June 30 helped compensate for the hit taken on the principal amount. Exchange Bank was the only auctioned bank with a missed dividend/interest payment that has not subsequently been repaid, missing one payment in the amount of $585,875 as of June 30.

The discount in which the securities were sold ranged from 3.5% to 33.85%, culminating in an overall median discount of 17.31%. “Pricing was not as strong as in the previous three auctions, which featured median discounts of 10.0%, 10.7% and 9.4%, respectively,” SNL reported.

Treasury indicated its plans to begin pooled auctions of CPP securities beginning this fall.


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