Economy - Economics USA

Treasury sold warrants below market value

07-10-2009 • Reuters

The U.S. Treasury Department allowed 11 smaller banks to repurchase stock warrants at only 66% of their market value, passing up about $10 million of taxpayer profits from government bailouts.

The Congressional Oversight Panel said the government could lose $2.7 billion if it accepts similar valuation levels on warrants repurchased by remaining banks that received government capital injections.