Friday, November 8, 2013

U.S. Treasury struggles to sell investment in Gastonia bank

The U.S. Treasury tried unsuccessfully to end its bailout investment in Gastonia-based AB&T Financial Corp. this week after not enough outside investors were interested in buying it.

The government was only able to sell 85 percent of its original Troubled Asset Relief Program preferred stock capital infusion it made in the bank in 2009. AB&T Financial is the parent of Alliance Bank & Trust, which has locations in Gaston and Cleveland counties.

And the sales the Treasury were able to make came at a deep discount -- about 25 percent of full value, the government said Friday. Not enough bids came in above the minimum the Treasury had set.

The government began its auction of the investment earlier this week. The Treasury has spent the past year and a half trying to quickly unwind the rest of its bailout program.

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