Banks negotiating to reclaim stock warrants they granted in return for Troubled Asset Relief Program money may shortchange taxpayers by almost $10 billion if Treasury Secretary Timothy Geithner’s first sale sets the pace, data compiled by Bloomberg show. Full Story »
Posted by Kaizar Campwala
An important story that's very well reported by Pittman. Tax payers could be losing out on a lot of money going straight to banks, if other TARP paybacks are set at the same terms. Pittman calculates these projections, and consults with experts to lay out this story.
“Bank managers have stronger incentives than Treasury personnel to get a better deal for their constituents,” said Wilson, who has written about appraising warrants.
