WASHINGTON - The government said it will sell warrants it holds in Atlanta-based SunTrust Banks Inc. today, the latest move to recoup costs from the $700 billion financial bailout.
The Treasury Department said the sales would cover 17.9 million warrants. A warrant gives the purchaser the right to buy SunTrust stock at a specified price.
The government will hold two sales because SunTrust received two disbursements. One group would have the option to bid a minimum of $2; the second at least $1.05.
SunTrust received $4.85 billion from the federal government in the fall of 2008, at the height of the financial crisis. The bank repaid the money in March. The sale of the warrants will sever the banks ties from the bailout fund.