June 27, 2009

The Treasury plans to sell warrants obtained as part of the financial bailout quickly after banks repay government shares.Banks will have 15 days after retiring government stakes to propose a “fair market value’’ for the securities, the Treasury said in a statement yesterday. Should officials object to the estimate, up to three independent appraisers will help set a price. For lenders that don’t want to make an offer on the warrants, the Treasury will sell them at auctions.

The guidance signals that policy makers are aiming to speed the withdrawal of the government from the banking industry, rather than attempting to maximize returns for the taxpayers by waiting for share prices to rise.“The president has clearly stated that his objective is to dispose of the government’s investments in individual companies as quickly as is practicable,’’ the statement said.Holding the warrants longer offers “no certainty that we would realize higher values.