John Olagues

How Treasury Favors Banks over Taxpayers in Warrant Negotiations

I would say that in all probability everyone of the banks that accepted TARP money needed and wanted the TARP funds. For example Goldman Sachs accepted $10 Billion when just weeks earlier they accepted $5 Billion from Warren Buffett where GS gave him 45 million warrants and 10% interest on the Warrants. That deal was far more onerous to GS than the TARP money.

The banks are probably borrowing from the FED at 1/2 % and paying off the TARP money which requires 5% and are trying to buy back the warrants for 50% of their value.

Perhaps executives like those at JPM who received $85 Million of SARs and Restricted stock in January 2009 which is now valued at $175 million should forfeit 50% of their gains back to JPM. JPM would be able to pay off the Treasury at its contractual value instead of begging for more subsidies from the Treasury.
John

How Treasury Favors Banks over Taxpayers in Warrant Negotiations

I believe that Linus is correct in general. But I believe he is too kind to those criminal bankers on welfare. My general observation is that their theft is far greater than he estimates.

Its really sad that the commentators (except "no money mo"...) are so ignorant of how options and warrants work and have the nerve to be critical of someone that is trying to shed some light on the subject.

I actually believe no one can be as stupid as the top six commentators and that leaves only one answer to why they spew such drivel. They are shills for criminals.

I am certain that none of the first six commentators have the ability to understand, analyze or value a warrant or a stock option.

john Olagues