Flagstar Bancorp in Troy, Mich., is paying $371 million to put behind it the vestiges of its dealings with the Troubled Asset Relief Program.
The $13.7 billion-asset company said Thursday that it has received regulatory approval to buy back the series C preferred stock that it had issued to the Treasury Department in 2009 and that the government
Flagstar plans to finance the buyback, which is set to occur July 29, with proceeds from senior debt securities and from internally generated sources, including a $200 million dividend from its Flagstar Bank subsidiary, the filing said.
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The recently rebranded California International Bank has stiffed the government on 30 dividend payments and has spurned a request to let Treasury officials observe its board meetings. There is some optimism; a Vietnamese businessman was approved to take over control after injecting $4.5 million in capital into the bank.
June 24 -
Community Business Bank in West Sacramento, Calif., has finally put the Troubled Asset Relief Program in the past.
May 31 -
It has been seven years, and its going to take about $16.1 million, but First Reliance Bancshares in Florence, S.C., says it is about to close a key chapter in its post-crisis recovery and is ready to ramp up growth.
June 6
Also on Wednesday, Flagstar provided details on the senior debt offering. The company will seek by July 11 to sell $250 million of notes bearing a 6.125% interest rate that are due in 2021, it said in a news release. Flagstar will use the proceeds to fund the buyback of the Tarp-related shares and for general corporate purposes.