This week, the US Treasury plans on selling off warrants it received from Boston Private Financial Holdings Inc., the latest effort to recoup the costs of the $700 billion financial bailout. In total, there will be a sale of 2.89 million warrants from the Boston-based financial institution will take place on Tuesday with the results announced Wednesday, Treasury said. It set a minimum bid price of $1.40 per warrant.
In November of 2008, Boston Financial received $154 in support and as of January of 2010, it repaid $50 million, and the remaining $104 million last June. When the warrants are sold, this will sever the ties with the government.
Purchase of the warrants gives the holder the right to buy Boston Financial common stock at a fixed price. Purchase of the warrants will give the holder the right to buy Boston Financial common stock at $8 per share through November 2018. Boston Financial stock closed at $6.72 on Friday and over the past 52 weeks it has traded in a range of $4.67 to $8.97. Olympian
And last week the government received $312.2 million from the sale of warrants it held in Citigroup. The bank received $45 billion bailout at the height of the financial crisis. The Treasury has also said it will sell warrants during the first quarter of this year that it holds in Wintrust Financial Corp., which is based in Lake Forest, Ill.
