Monday, September 10, 2012

Two more TARP investments in N.C. banks to be auctioned

The U.S. is scheduled to auction off the federal bailout investments in two more North Carolina banks today, the Treasury announced.

The first is Elkin-based Yadkin Valley Financial Corp., which received $49 million through preferred stock sales through the Troubled Asset Relief Program. The bank announced last month that it had evened up with the government on missed dividend payments.

The second is Salisbury's F & M Financial Corp., which had $17 million in bailout money and had been paying dividends.

The Treasury has announced numerous auctions over the past several weeks as the government seeks to extricate itself from the unpopular program. The government will also be selling $18 billion in shares of AIG today.

Bank of North Carolina's TARP investment was auctioned off last month. It was sold at an 8 percent discount, but including dividend payments, the government did not take a loss.