Treasury to Sell 12.7 Million Capital One Warrants

The Treasury Department plans to auction 12.7 million warrants to buy common stock of Capital One Financial, another step in the government's Troubled Asset Relief Program.

Treasury obtained the warrants through the $700 billion TARP program and announced plans last month to sell warrants from Capital One as well as JPMorgan Chase and TCF Financial .

The government did not announce an auction date.

A modified Dutch auction will be held at which time investors can submit bids at increments above a set price. The process aims to establish a fair market price for the warrants.