US Treasury to net $936 million from JPMorgan warrants

December 11, 2009

WASHINGTON, Dec 11 (Reuters) – The U.S. Treasury Department on Friday said it priced warrants in JPMorgan Chase & Co at $10.75 per warrant in a deal that will bring U.S. taxpayers net proceeds of $936.06 million.

The 88.4 million warrants to purchase common stock in JPMorgan were priced in a modified Dutch auction. The sale marks the disposal of the government’s remaining investment in the banking giant, which the Treasury received last year in exchange for $25 billion in bailout money.

The closing of the warrant sale is expected to occur on or about Dec. 16. Deutsche Bank Securities was the sole bookrunner, with Ramirez & Co., The Williams Capital Group and Utendahl Capital Group co-managing the offering.

The sale is the latest in a series of Treasury auctions of warrants received from banks that accessed the $700 billion Troubled Asset Relief Program.

Last week, Treasury priced warrants in Capital One Financial Corp at $11.75 each, bringing in net proceeds of $146.5 million. It also has set plans to auction warrants in TCF Financial Corp.

Bank of America, which this week paid back $45 billion in bailout funds, has not yet determined whether it will try to buy back Treasury-held warrants or let the Treasury auction them off.

(Reporting by David Lawder; Editing by Andrea Ricci) ((; +1 202 898 8395; Reuters Messaging:

No comments so far

We welcome comments that advance the story through relevant opinion, anecdotes, links and data. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters. For more information on our comment policy, see