Comments on: How to sell TARP warrants http://blogs.reuters.com/felix-salmon/2009/06/29/how-to-sell-tarp-warrants/ A slice of lime in the soda Sun, 26 Oct 2014 19:05:02 +0000 hourly 1 http://wordpress.org/?v=4.2.5 By: slygator_sf http://blogs.reuters.com/felix-salmon/2009/06/29/how-to-sell-tarp-warrants/comment-page-1/#comment-37135 Tue, 20 Mar 2012 23:24:31 +0000 http://blogs.reuters.com/felix-salmon/2009/06/29/how-to-sell-tarp-warrants/#comment-37135 felix or anyone who can help answer my question: how does one purchase stock being offered by the US Treasury’s TARP auction warrants? i was told that there are six bank/financial companies that will be selling warrants in the coming weeks (end of march 2012). thanks in advance!

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By: David Merkel http://blogs.reuters.com/felix-salmon/2009/06/29/how-to-sell-tarp-warrants/comment-page-1/#comment-3459 Tue, 30 Jun 2009 21:12:07 +0000 http://blogs.reuters.com/felix-salmon/2009/06/29/how-to-sell-tarp-warrants/#comment-3459 I agree, Felix. Good piece.

http://alephblog.com/2009/05/24/what-is- the-sound-of-one-hand-clapping-what-is-t he-right-price-when-there-is-no-market/

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By: Linus Wilson http://blogs.reuters.com/felix-salmon/2009/06/29/how-to-sell-tarp-warrants/comment-page-1/#comment-3400 Mon, 29 Jun 2009 20:31:09 +0000 http://blogs.reuters.com/felix-salmon/2009/06/29/how-to-sell-tarp-warrants/#comment-3400 I have always advocated auctions over negotiations. The problem is that the purchase agreement sets up this negotiation process. The Treasury can only auction warrants where negotiations have broken off. Yet, Treasury has been slow to set up auctions. My valuations of the first 10 repurchases indicate the U.S. Treasury has given the banks great deals at taxpayers’ expense. Tables 2 and 3 of http://ssrn.com/abstract=1413442 provide valuations of 68 banks’ warrants including the 10 that repaid the preferred on June 17, 2009.

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By: dWj http://blogs.reuters.com/felix-salmon/2009/06/29/how-to-sell-tarp-warrants/comment-page-1/#comment-3383 Mon, 29 Jun 2009 16:16:19 +0000 http://blogs.reuters.com/felix-salmon/2009/06/29/how-to-sell-tarp-warrants/#comment-3383 Having an outstanding right-of-first-refusal would dampen the auction, creating optionality problems. thorsteinveblen is right; banks can participate in the auction, or, if they don’t like the dilution of warrants executing, buy back their own shares. The only sympathy I have for the banks on this one is that the warrants that were presumed to be paying for 3-5 years of funding only paid for 8 months of funding after the terms of the deal got significantly rewritten against the banks.

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By: Mark Wolfinger http://blogs.reuters.com/felix-salmon/2009/06/29/how-to-sell-tarp-warrants/comment-page-1/#comment-3375 Mon, 29 Jun 2009 14:49:17 +0000 http://blogs.reuters.com/felix-salmon/2009/06/29/how-to-sell-tarp-warrants/#comment-3375 If the government does the best thing for us – citizens who own the warrants – they will scale sell them to highest bidders.

Thus, there is no chance that will happen. I’m sure the banks will buy these warrants at far below fair value.

http://blog.mdwoptions.com/

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By: thorsteinveblen http://blogs.reuters.com/felix-salmon/2009/06/29/how-to-sell-tarp-warrants/comment-page-1/#comment-3369 Mon, 29 Jun 2009 14:30:26 +0000 http://blogs.reuters.com/felix-salmon/2009/06/29/how-to-sell-tarp-warrants/#comment-3369 Letting the banks match the winning bid is unnecessary. If the banks want to repurchase the warrants, they can bid in the auction.

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By: bdbd http://blogs.reuters.com/felix-salmon/2009/06/29/how-to-sell-tarp-warrants/comment-page-1/#comment-3366 Mon, 29 Jun 2009 14:17:39 +0000 http://blogs.reuters.com/felix-salmon/2009/06/29/how-to-sell-tarp-warrants/#comment-3366 The Treasury took warrants as part of the post 9/11 loan guarantee program for the airline industry (the Air Transportation Stabilization Board process), and as I understand it made money when the warrants were sold off. http://www.treas.gov/offices/domestic-fi nance/atsb/

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