Today, Treasury published a Warrant Disposition Report providing an overview of the warrants received by Treasury under the Capital Purchase Program (CPP) of the Troubled Asset Relief Program (TARP), and an explanation of the warrant disposition process and the results achieved on behalf of taxpayers. Since 2008, Treasury has invested $205 billion under the CPP in 707 U.S.-controlled banks, savings associations, and other financial institutions thorough the purchase of shares of senior preferred stock or other securities. As part of its investment, Treasury also received warrants to purchase shares of common stock or other securities from such entities. According to the Report, "to date, the disposition of warrants has succeeded in significantly increasing taxpayer returns on the CPP preferred investments that have been repaid," and as of December 31, 2009, Treasury has received $4 billion in gross proceeds on the disposition of warrants in 34 banks, consisting of (i) $2.9 billion from repurchases by the issuers at agreed-upon fair market values and (ii) $1.1 billion from auctions.
At the end of 2009, Treasury holds warrants in 230 public companies that have not repaid Treasury's CPP investments, and holds warrants in 18 institutions that have fully redeemed Treasury's CPP investment where Treasury "intends to sell those positions in the near future." In addition, Treasury also holds warrants in public companies in connection with other TARP programs, such as the Targeted Investment Program and the Asset Guarantee Program.