Treasury Sets Rules For Bank Warrant Buybacks

Law360, New York (June 26, 2009, 12:00 AM EDT) -- The U.S. Department of the Treasury has issued steps that the nation's financial institutions will need to take to repurchase the billions of dollars in warrants that the government holds as part of the Troubled Asset Relief Program.

On Friday, the Treasury announced the process for repurchasing warrants, which are options for the future purchase of securities at a set price. The government takes warrants from financial institutions when it buys troubled assets worth more than $100 million.

Earlier this month, Treasury said 10 of the...
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