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Banking industry

U.S. Treasury Auctions Wintrust Financial Warrants as Part of Financial Bailout Effort

Strategic Insights

— 1 min read

The U.S. Treasury Department announced plans to auction 1,643,295 warrants to purchase Wintrust Financial Corporation stock, with Deutsche Bank Securities Inc. as the sole book-running manager, as part of the government's effort to recoup costs from the 2008 financial bailout. The sale is expected to price through a modified Dutch auction, allowing potential bidders to place bids at any price. This move follows recent sales of warrants for Citigroup and Boston Private Financial Holdings, which generated $312.2 million and $6.2 million, respectively. The Treasury's plan to auction the Wintrust warrants is part of the ongoing effort to recover costs associated with the financial bailout, which totaled 700 billion dollars.

Key Takeaways:

  • The U.S. Treasury Department plans to auction 1,643,295 warrants to purchase Wintrust Financial Corporation stock through a modified Dutch auction.
  • Deutsche Bank Securities Inc. is the sole book-running manager for the offering.
  • The sale is the latest effort by the U.S. government to recoup the costs of the 2008 financial bailout, which totaled 700 billion dollars.
  • The Treasury has received $312.2 million and $6.2 million from the sale of warrants held in Citigroup and Boston Private Financial Holdings, respectively.
  • The auction is expected to price through a modified Dutch auction, allowing potential bidders to place bids at any price.
  • The sale of the Wintrust warrants is part of the government's ongoing effort to recover costs associated with the financial bailout.
  • The Treasury's decision to auction the Wintrust warrants reflects the ongoing efforts to stabilize the financial system and recover losses incurred during the 2008 financial crisis.

Statistics:

  • 1,643,295: The number of warrants to purchase Wintrust Financial Corporation stock to be auctioned by the U.S. Treasury Department.
  • 700 billion dollars: The total cost of the 2008 financial bailout.
  • $312.2 million: The amount received by the Treasury from the sale of warrants held in Citigroup.
  • $6.2 million: The amount received by the Treasury from the sale of warrants held in Boston Private Financial Holdings.

Sources:

  • Xinhua, "U.S. Treasury plans to auction warrants for Wintrust Financial Corporation" (February 7, 2011)
  • Comtex SmarTrend Alert, "UPTREND on 12-13-2010 for DB @ $53.57" (February 3, 2011)

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