If this New York Post report is true, JPMorgan (JPM) may pull a nice public relations coup in its handling of the oustanding TARP warrants.
Unlike the other major banks, which gave warrants to the federal government in exchange for billions in capital under the Troubled Asset Relief Program, JPMorgan is expected to have its warrants sold in a public auction that would be run by the US Treasury. Warrants grant their owners the right to purchase shares at a discount sometime in the future.
The bold move stands in stark contrast to the efforts by other TARP recipients that gave warrants over to the government in exchange for rescue cash. Those firms, which include Goldman Sachs, Morgan Stanley and American Express, have negotiated with the Treasury behind closed doors, offering little clues regarding whether the agency struck a good deal for the US taxpayer.
In other words: no back-room deals, no reports from Linus Wilson how much the bank did or didn’t screw the US taxpayer. If the warrants are sold via auction, where anyone can bid on them, there’s no way it can be claimed that the winner underpaid.
The Jamie Dimon love in the media is already huge, and this will just add to it.
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