Monday, April 15, 2013

Greensboro bank set to auction off bailout investment

Greensboro-based NewBridge Bancorp is set to become the latest North Carolina bank to exit the federal bank bailout program through a public auction.

The U.S. Treasury said Monday the preferred stock investment in NewBridge would go to auction along with seven other banks. Bidding is scheduled to end Thursday.

NewBridge had one of the largest remaining Troubled Asset Relief Program stakes in North Carolina, at $52 million.

The Treasury has regularly auctioned off bailout investments over the past year as it tries to extricate itself from the financial crisis-era program.

When they go to auction, these investments are generally sold at a discount. The government can still break even, however, when dividend payments are included.