Comerica Inc., the Dallas banking company that repaid $2.25 billion in U.S. bailout funds, said it will not repurchase stock warrants issued to the government in exchange for capital from the Troubled Asset Relief Program.
The decision, disclosed by Comerica in a federal filing Tuesday, makes it likely that the Treasury Department will auction the warrants, which carry the right to buy 11.5 million shares of Comerica stock at $29.40 each until November 2018. The company's common shares closed Tuesday at $37.84.
Pending sales also may include Hartford Financial Services Group Inc., the Connecticut insurer that said March 16 it does not plan to repurchase its Tarp warrants after repaying $3.4 billion of bailout money. Neither Wells Fargo & Co. nor PNC Financial Services Group Inc. has said whether it will buy back Tarp warrants. Both have repaid U.S. bailout funds.