Treasury announces auction of 272 million Bank of America stock warrants on Wednesday

Treasury sets Bank of America warrant sale date

WASHINGTON — The Treasury Department says it will auction 272 million warrants for Bank of America stock to recoup taxpayer money from the controversial financial bailout fund.

Treasury said the auctions will take place on Wednesday and will be divided into two classes of warrants. Warrants are financial instruments that allow the holder to buy stock in the future at a fixed price.

Bank of America repaid the government $45 billion in December as part of its efforts to sever ties with the $700 billion bailout program. The auction of the warrants is taking place because Bank of America and the Treasury Department could not agree on a price for the warrants.