Banks’ Efforts to Repay U.S. May Undercut Taxpayers - NYTimes.com

At issue are so-called warrants that the government received from the banks last autumn, when the financial world was teetering. Like options, warrants give their owners the right to buy stock at a set price over a certain period of time, in this case, 10 years.Now, with many banks itching to return their bailout money, the warrants are raising some thorny questions. What are these investments worth? Should the government drive a hard bargain, or let the banks off easy? Should it maximize profit for taxpayers, or minimize pain for banks?

Banks’ Efforts to Repay U.S. May Undercut Taxpayers - NYTimes.com