Seeing Value in TARP Warrants

Editor's note: The original version of this column had errors on the breakeven level for TCB warrants and the warrant strike price and intrinsic value of CMA warrants. These figures have since been corrected.

One of the interesting points that came out of my discussion with the partners at PL Capital last week was their affection for the bigger banks. They also told me that it wasn't just the big banks that were cheap but also the big-bank TARP warrants that were publicly traded. Most of these warrants do not expire until 2018 or later and give enormous leverage to investors who believe these banks will recover over the next five years....557 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

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