Results 1 to 1 of 1
Thread Information
Users Browsing this Thread
There are currently 1 users browsing this thread. (0 members and 1 guests)
Threaded View
-
12-04-2009, 06:42 PM #1
Treasury gets $146.5 million for Capital One warrants
Treasury gets $146.5 million for Capital One warrants
Posted 51m ago
By Martin Crutsinger, AP Economics Writer
WASHINGTON — The Treasury Department said Friday that it received $146.5 million for the warrants of Capital One Financial . in the first auction of warrants the government received as part of the $700 billion financial system bailout.
The auction, conducted by Deutsche Bank Securities on Thursday, resulted in a price of $11.75 a warrant. Warrants are financial instruments that allow the holder to buy stock in the future at a fixed price.
Each warrant gives the owner the right to purchase one share of Capital One (COF) stock at a price of $42.13. The warrants will expire on Nov. 14, 2018.
The government had received nearly 12.7 million warrants in return for providing Capital One $3.56 billion in support from the financial rescue fund in November 2008 at the height of the financial crisis.
The auction was held becausevCapital One and the government could not agree on a price for the warrants after months of negotiations.
Most banks wanted to repurchase their warrants so they would avoid diluting the value of their stockholders' shares in the future, but the government was concerned that it could be accused of accepting prices that were too low.
The government announced last month that it would also hold warrant auctions for JPMorgan Chase (JPM) and TCF Financial (TCB).
All three companies have paid back the original support from the government and the only remaining issue was the disposition of the warrants.
http://www.usatoday.com/money/industrie ... ants_N.htmNO AMNESTY
Don't reward the criminal actions of millions of illegal aliens by giving them citizenship.
Sign in and post comments here.
Please support our fight against illegal immigration by joining ALIPAC's email alerts here https://eepurl.com/cktGTn
Bill Melugin-New CBP Data Reveals Over 434,000 Illegals Flown...
05-19-2024, 07:13 AM in illegal immigration News Stories & Reports