June 5, 2012 / 1:31 PM / 5 years ago

CORRECTED-U.S. Treasury to sell stock in seven banks

(Clarifies figure in fourth paragraph)

WASHINGTON, June 5 (Reuters) - The U.S. Treasury Department on Tuesday said it will auction off several preferred stock investments in seven banks that received government assistance at the height of the financial crisis.

The Treasury said it expects to commence the auctions of preferred stock purchased through the Troubled Asset Relief Program, or TARP, on or about June 11.

The seven banks are Ameris Bankcorp, Farmers Capital Bank Corp, First Capital Bankcorp Inc, First Defiance Financial Corp, LNB Bancorp Inc , Taylor Capital Group and United Bankcorp Inc .

So far, the government has recouped about $264 billion from its bank programs under TARP, the bailout initiative launched during the financial crisis, the Treasury said.

The offerings will be carried out using a modified Dutch auction process, according to the Treasury, which establishes a market price by allowing investors to submit bids at specified increments. More detailed guidance will be available in prospectuses released before each auction. (Reporting By Margaret Chadbourn; Editing by Andrea Ricci)

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