US to sell JPMorgan Chase warrants

WASHINGTON: The US Treasury announced details on Tuesday of a plan to sell 88 million warrants in JPMorgan Chase to end the government investment in the banking giant under last year's financial system rescue.

Officials said a so-called Dutch auction would be held Thursday for the warrants, which are a type of option that would allow the purchase of regular shares in the bank.

Deutsche Bank Securities will run the auction and bidding will start at 8.00 dollars per warrant.

"The proceeds of this sale will provide an additional return to the American taxpayer from Treasury's investment in the company beyond the dividend payments it received on the related preferred stock," a Treasury statement said.

In June, major banks began repaying the US Treasury for capital injected into the financial system during the height of the crisis.

JPMorgan Chase in June repaid the government for its 25-billion-dollar capital injection.