Banking industry wants TARP exit to be less costly

When the government purchased preferred stock in hundreds of financial institutions as part of the Troubled Asset Relief Program, it received warrants in the banks. Because many banks are keen to repay the taxpayer money, the banking industry is lobbying the Treasury in regard to the warrants. The industry argued that exiting TARP is especially difficult and expensive because of what is basically a "prepayment penalty" -- buying back the warrants.

View Full Article in:

Wall Street Journal (tiered subscription model), The

Published in Brief: