Comments on: Banks Get a Break, Buy TARP Warrants Back on the Cheap http://www.nakedcapitalism.com/2009/07/banks-get-break-buy-tarp-warrants-back.html Sun, 22 Nov 2009 22:11:10 -0500 http://wordpress.org/?v=2.8.4 hourly 1 By: PR Cyclone http://www.nakedcapitalism.com/2009/07/banks-get-break-buy-tarp-warrants-back.html#comment-50413 PR Cyclone Tue, 14 Jul 2009 00:53:34 +0000 http://www.nakedcapitalism.com/2009/07/banks-get-a-break-buy-tarp-warrants-back-on-the-cheap/#comment-50413 The COP analysis is based on Black-Sholes, which is inaccurate for illiquid assets.<br /><br />Our analysis shows that, with the exception of Old National Bancorp, bank warrant repurchases have been made at close to “fair value” prices.<br /><br />Pluris Valuation Advisors has just completed a study valuing the warrants of all 265 public banks participating in TARP using data accumulated from several years worth of TARP transactions.<br />A copy of the study is available here: http://www.plurisvaluation.com/site/liquistat.html#2.<br /><br />You can also download a white paper on valuing warrants here: http://www.plurisvaluation.com/site/pressroom/whitepapers.html.<br /><br />Espen Robak, President The COP analysis is based on Black-Sholes, which is inaccurate for illiquid assets.

Our analysis shows that, with the exception of Old National Bancorp, bank warrant repurchases have been made at close to “fair value” prices.

Pluris Valuation Advisors has just completed a study valuing the warrants of all 265 public banks participating in TARP using data accumulated from several years worth of TARP transactions.
A copy of the study is available here: http://www.plurisvaluation.com/site/liquistat.html#2.

You can also download a white paper on valuing warrants here: http://www.plurisvaluation.com/site/pressroom/whitepapers.html.

Espen Robak, President

]]> By: RTD http://www.nakedcapitalism.com/2009/07/banks-get-break-buy-tarp-warrants-back.html#comment-50244 RTD Fri, 10 Jul 2009 11:54:36 +0000 http://www.nakedcapitalism.com/2009/07/banks-get-a-break-buy-tarp-warrants-back-on-the-cheap/#comment-50244 It's more of the same old, "privatize the profits and socialize the risks and losses".<br /><br />The government needs to state clearly and unequivocally that any bank that received TARP money and then paid it back and then has to go back to the gov't for an additional bailout within the next 5 years will be immediately nationalized. It also needs to be stated that nationalization will mean the the immediate firing of all C-level execs and business unit leaders, the removal of the BOD, the elimination of all shareholder equity, and a haircut for bondholders.<br /><br />Banks are using the "we paid back the TARP money" angle to maneuver past their competitors knowing full well that if the markets tumble again, the gov't will be right there to rescue them again. It's more of the same old, "privatize the profits and socialize the risks and losses".

The government needs to state clearly and unequivocally that any bank that received TARP money and then paid it back and then has to go back to the gov't for an additional bailout within the next 5 years will be immediately nationalized. It also needs to be stated that nationalization will mean the the immediate firing of all C-level execs and business unit leaders, the removal of the BOD, the elimination of all shareholder equity, and a haircut for bondholders.

Banks are using the "we paid back the TARP money" angle to maneuver past their competitors knowing full well that if the markets tumble again, the gov't will be right there to rescue them again.

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