12/2/2009

The government's auctions of warrants it received in exchange for helping Capital One Financial, JPMorgan Chase and TCF Financial through the Troubled Asset Relief Program might result in a $3.17 billion windfall for taxpayers. "This is definitely the best possible outcome for taxpayers," said Linus Wilson, a finance professor at the University of Louisiana. Wilson provided the estimate after the Treasury began auctioning its warrants in Capital One. "It's refreshing to see the U.S. Treasury is looking to markets to price securities instead of looking to price them through negotiations between Treasury officials and the banks," Wilson said.

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