Treasury Gets $1.54 Billion for Bank of America Warrants
According to the Treasury Department's press release, two classes of warrants -- financial instruments that let an investor purchase ordinary shares in the future at a set price -- were auctioned at $8.35 per warrant and $2.35 per warrant.
The sales, led by Deutsche Bank Securities Inc., are expected to close on or about March 9.
Thursday's sale of bailout-related warrants generated the largest amount yet from one financial institution. Last summer, Treasury sold $1.1 billion of Goldman Sachs (GS) warrants, and in December Treasury collected more than $950 million from warrants issued by JP Morgan Chase (JPM).
The Department says the sales "provide an additional return to the American taxpayer" as part of the controversial $700 billion Troubled Asset Relief Program.