I wouldn’t worry too much about the banks they have obama in their pocket and they are not getting stuck with the bill we are!
Treasury Department selling TARP warrants at 34% discount
Washington Business Journal - by Bryant Ruiz Switzky Staff Reporter
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The Treasury Department is selling stock warrants back to TARP recipients for only 66 percent of fair market value, according to a report issued Friday by the Congressional Oversight Panel.
Through the Troubled Asset Relief Program, known as TARP, the Treasury Department purchased preferred stock and warrants from banks in an effort to prop up lending.
Warrants, which give the holder the right to buy a company’s stock at some point in the future for a specific price, presented a lot of potential upside for taxpayers, should bank stock prices rise above the face value of the warrants.
Many banks have sought to buy back their preferred shares and warrants from Treasury.
“Because the warrants that accompanied TARP assistance represent the only opportunity for the taxpayer to participate directly in the increase in the share prices of banks made possible by public money, the price at which the warrants are sold is critical,” the panel said.
The panel, charged with determining whether taxpayers are receiving maximum benefit from the TARP, conducted its own valuation of the warrants the Treasury holds. It found that the 11 banks that have repurchased their warrants from the Treasury for a total amount that the panel estimates to be only 66 percent of current market value, shortchanging taxpayers by $10 million.
The Treasury is still in the early stages of its warrant repurchase program, and the panel acknowledges that the prices thus far may not be representative of what is to come.
http://washington.bizjournals.com/washington/stories/2009/07/06/daily90.html?surround=lfn&ana=test
They will also rake in the $$$ with crap and tax!
http://greenhellblog.com/2009/07/08/goldman-sachs-to-be-carbon-regulator/
http://www.noquarterusa.net/blog/2008/09/21/baracks-wall-street-problem-is-now-americas/
http://www.businessinsider.com/henry-blodget-is-obama-in-wall-streets-pocket-2009-4
http://www.theatlantic.com/doc/200905/imf-advice
Here's who chairs this "panel" and see if you want to take that "report" at face value: Elizabeth Warren Since May 2005 Warren has been a contributing blogger at The Huffington Post. She and her law students write a blog called Warren Reports, part of Josh Marshall's TPMCafe. Warren is married to Bruce Mann, a legal historian and law professor also at Harvard Law School. ..... ..... In 2009, Warren co-authored a second study on medically-related bankruptcies. [10] , claiming the number of medical bankruptcies had increased to 70%. This study attracted significant national attention and controversy. Economics blogger Megan McArdle noted out that no other studies find this same proportion of medical bankruptcies. ..... ..... Warren is a member of the FDIC's Committee on Economic Inclusion. Warren appeared in the documentary film Maxed Out in 2006 and has collaborated with the non-profit organization Americans for Fairness in Lending. She was interviewed for a special featurette on the DVD of Sicko. She has appeared several times on Dr. Phil to talk about money and families.
As far as all banks benefitting from Crap & Trade, I don't know specifically, but I guess, we then should just join Sherman and use this "opportune" moment by making this "payment" a condition or a fee for BoA getting in on a good thing if C&T ever pass?