Atlanta-based SunTrust bank has bought nearly $11 million of government-owned stock warrants that were part of the federal TARP program.
In March, the bank repaid the nearly $5 billion in federal assistance it received under the Troubled Asset Relief Program, which covered the government’s preferred shares of stock. Thursday’s buyback is for four million common stock warrants that were part of the bailout agreement.
The warrants are essentially the right to buy stock in the future.
The Treasury Department auctioned more than 17 million SunTrust warrants Thursday, collecting $30 million.
SunTrust officials said the buyback is a good investment and prevents dilution of current stock-owners’ shares.