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Bank Warrants

Now that they've survived government stress tests, major U.S. banks want to pay back the funds they received from the Troubled Asset Relief Program (TARP). But, as NBR's Scott Gurvey explains, returning those funds might not be as easy as it seems because of warrants U.S. taxpayers received in exchange for TARP monies.



Discuss this story on XChange - The NBR Blog.

Related NBR Stories & Links

• 05-07-09: "Learn More" - Stress Test Results
• 03-31-09: The TARP Six Month Checkup
• 01-30-09: The True Cost of the TARP
• 09-25-08: "Learn More" - Early Look at Bailout Details
• 09-23-08: "XChange, The NBR Blog" - Bailout Hearing, Quote Machine

External Links/Articles*

• Subsidy Scope
  Subsidy Scope is a project of The Pew Charitable Trusts that is designed to "raise public awareness about the role of fedearl subsidies in the economy." Among other things, the site is currently monitoring the TARP, including its warrants. This links to a database titled, "A Slice of the TARP Data: Monitoring the Value of TARP-Funded Warrants."
• Capital One Financial
  Capital One Financial is one of the banks that announced it will sell shares of stock to pay back the TARP. This links to a May 11, 2009 press release issued by the bank. The release is titled, "Capital One Announces Public Offering of 56 Million Shares of Common Stock."
• U.S. Bancorp
  U.S. Bancorp is one of the banks that announced it will sell shares of stock to pay back the TARP. This links to a May 11, 2009 press release issued by the bank. The release is titled, "U.S. Bancorp Announces $2.5 Billion Common Stock Offering."
• BB&T
  BB&T is one of the banks that announced it will sell shares of stock to pay back the TARP. This links to a May 11, 2009 press release issued by the bank. The release is titled, "BB&T Announces $1.5 Billion Common Stock Offering."
• U.S. Treasury (PDF Document)
  This links to a document issued by the U.S. Treasury that details the terms related to the senior preferred stock and warrants the government received as part of the TARP Capital Purchase Program."

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