Monday, March 8, 2010

Treasury Announces Auction of Warrants on Bank Stocks

The U.S. Department of the Treasury today announced that it has commenced secondary public offerings of the following securities:

· 1,707,456 warrants to purchase the common stock of Washington Federal, Inc.;
· 595,829 warrants to purchase the common stock of Signature Bank; and
· 758,086 warrants to purchase the common stock of Texas Capital Bancshares, Inc.

The bizarre ritual that this somehow is a return to "the taxpayer" (Don't wait by the mailbox for your check) continues)

Treasury states:
The proceeds of these sales will provide an additional return to the American taxpayer from Treasury’s investment in Washington Federal, Signature Bank and Texas Capital beyond the dividend payments it received on the related preferred stock.
Of course, the only reason most of these banks are alive today is because the government with its other hand has been propping up the junk assets these banks have been holding.Some return.

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