According to the government, the completion of the sale means it is now divested of any investment in BofA.
It is also the highest amount taken from a warrant sale of securities in one institution.
The A and B class warrants sold in the auction were priced at $8.35 and $2.55 respectively.
Bernard Chriqui, a New York-based trader at Nomura Securities International Inc., told Bloomberg that the US Treasury received a âgood priceâ for the securities.
âThe A warrants were picked up at a fair value by investors with a longer-term outlook, versus opportunistic investors looking to make a short-term profit.
Previously, the highest amounts made through auctions of this kind were $936 million in a sale of stock connected with JPMorgan and $1.1 billion from warrants repurchased by Goldman Sachs.
The Treasury is currently looking to recover money lent to banks as part of its Troubled Asset Relief Program.
Banks borrowed up to $700 billion via the scheme to help survive during the global credit crunch.
By Jim Ottewill