Having already repaid its $10 billion loan from the government, Morgan Stanley says it is ready to buy back the warrants that it had given the government.
From Stephen Bernard, Associated Press:
NEW YORK — Morgan Stanley said Thursday it repurchased warrants it issued to the government as part of last fall's bank bailout program for $950 million.
New York-based Morgan Stanley issued the warrants, which could have been converted to common shares, to the Treasury Department as part of the loan package it received under the Troubled Asset Relief Program.
As part of the program, Morgan Stanley received $10 billion in funding from the government to help bolster its balance sheet as credit markets essentially shut down. In exchange, the government received preferred shares in Morgan Stanley and the warrants to purchase common shares.
