The federal government is selling its stakes in Webster Financial Corp. in Waterbury and Georgia’s SunTrust Banks Inc. obtained as part of a federal bailout of the lenders at the height of the financial meltdown more than three years ago.
The U.S. Treasury Department says it plans a Dutch auction public officer of securities issued by both financial institutions that give holders the right to buy a certain number of shares at a set price.
Webster issued its warrants in return for $400 million in capital from the Treasury as part of the capital purchase program, and its sister rescue program the troubled asset repurchase program (TARP).
Atlanta-based SunTrust got $350 million.
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Both have since repaid those monies.
