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
The article delivers a bewildering array of prices, authorities, and some perspective on their meanings, but it is intended for those familiar with financial business. The implicit message is that Treasury is allowing taxpayers to take a beating on TARP sales.
Treasury Department spokesman Andrew Williams,“We’re doing our best to protect the taxpayers’ interest and make sure we get fair market value." The first was Old National Bancorp in Evansville, Indiana, which gave the Treasury Department $1.2 million last week for warrants that may have been worth $5.81 million, according to the data.
With Treasury and the Fed Reserves populated with Wall Street insiders, it is not surprising that banks are being given high-sugar deals.