Morgan Stanley Pays $950 Million For Warrants

johnmack serious tbi

Morgan Stanley says it paid $950 million to repurchase warrants issued to the government as part of last fall’s bank bailout program.

The warrants, which could have been converted to common stock, were issued to the Treasury Department as a key part of the attempt to make the TARP provide an investment like return rather than just operate like another government spending program. On balance, it seems that the U.S. Treasury has negotiated better deals in the last three weeks than it did in all of May and June.  We still would have been interested to see what these warrants would have fetched at auction, rather than negotiated repurchases.

Morgan Stanley repaid the $10 billion it received from TARP in June.

NOW WATCH: Money & Markets videos

Business Insider Emails & Alerts

Site highlights each day to your inbox.

Follow Business Insider Australia on Facebook, Twitter, LinkedIn, and Instagram.