-
The Treasury Department has sent letters to 200 remaining Tarp banks indicating that the agency may auction its stakes as parts of pools this fall. While the move removes the government from the banks, it presents new challenges, particularly for recapitalizations.
June 26 -
M&T Bank Corp. plans to repay most of its $1.08 billion of federal aid by the end of June and has received Federal Reserve Board approval to buy Wilmington Trust Corp.
April 27
The Treasury Department plans to sell $381.5 million of preferred shares it holds in M&T Bank Corp., the largest bank still in the Troubled Asset Relief Program.
The offering — which was announced Thursday and has yet to be priced — will free the Buffalo company from Tarp after more than four years. M&T avoids having to hold its own offering,
M&T's reluctance to issue shares to repay Tarp is one of the key reasons the $80.8 billion-asset company has moved slowly to exit the program.
Acquisitions are a second reason M&T stayed in Tarp long after other healthy banks such as U.S. Bancorp (USB) and BB&T (BBT) got out.
M&T took $600 million in aid in 2008, and inherited another $151.5 million in
M&T
The company cannot comment on active offerings, an M&T spokesman said Thursday.
M&T is the largest bank by assets that still holds Tarp, and its $381.5 million debt is the fifth-largest outstanding Treasury investment in banks.
The top four, according to the Treasury: Synovus Financial (SNV) of Columbus, Ga., which owes $967.9 million; Popular (BPOP) of Hato Rey, Puerto Rico, which owes $935 million; Zions Bancorp (ZION) of Salt Lake City, Utah, which owes $700 million; and First BanCorp, of San Juan, Puerto Rico, which owes $400 million.
The Treasury in recent months has sold stakes in about 20 banks as it seeks to recoup its investments and retire Tarp.
The M&T offering is to involve two tranches of M&T securities: $230 million of Series A preferred shares and $151.5 million of Series C preferred shares.
The Treasury still holds warrants to purchase 1.6 million in M&T common stock. Banks may buy back warrants, or Treasury can auction them.
