Can our government waste the taxpayers money or what? This time its a mere $10 billion. Banks are negotiating to reclaim warrants they granted in return for the TARP monies. Old National Bancorp (NYSE: ONB) was the first to negotiate a deal with the Treasury. The bank bought back its warrants for $1.2 million. They may have been worth $5.81 million. Now, isn't this the sweetest deal you can imagine. The banks are getting a pile of free money.
If the Treasury follows the Old National Bancorp deal, it would save Bank of America Corp. (NYSE: BAC) $2.03 billion, Wells Fargo & Co. (NYSE: WFC) $1.48 billion, JPMorgan Chase & Co. (NYSE: JPM) $1.46 billion, Morgan Stanley (NYSE: MS) $983 million, Citigroup Inc. (NYSE: C) $965 million, and Goldman Sachs Group Inc. (NYSE: GS) $693 million.
The 20 largest banks would save a total of $9.98 billion. Isn't this cool. These banks don't have to do anything and the money just keeps pouring in.
Now enter the politicians. Senator Jack Reed said, "We need to ensure that the financial industry recovers and that banks can start lending again, but taxpayers must be fairly compensated as well." Linus Wilson, professor of finance at the University of Louisiana said, "Lenders shouldn't be trusted to make suppositions that would be to the advantage of taxpayers."
So there you have it. Another $10 billion down the drain. This endless wastefulness never seems to stop. The Treasury has declined comment.
Do you believe that this is a fair deal?











Reader Comments (Page 1 of 1)
5-24-2009 @ 4:12PM
uigroup said...
I believe it is time for a national uprising. We need to eliminate these idiots(Legislative,Judiciary,and Executive) post haste. Most of them should be tried for treason, and the rest should be stripped of thier assets, and citizenship, and summarily thrown out of the country. Once and for all we must take back our rights, and never let them be taken again
5-24-2009 @ 4:45PM
crazyold man70 said...
Obama,,,,,the best president ever PURCHASED by the rich....
5-24-2009 @ 4:52PM
ij70 said...
Mr. Obama, the one term president.
5-24-2009 @ 5:36PM
tarogifts said...
The government should have sent every tax-paying American a check for one million dollars-you can bet WE would have bailed out the mortgage companies, the banks, the car companies -and put tax revenues right back into the coffers. We could send kids to college, start new businesses-and be happier, more prosperous, and these "banksters" wouldn't be getting filthy rich at our expense!
5-24-2009 @ 7:55PM
Jill Schottenstein said...
IS IT CONSTITUTIONAL FOR AN UNDERWRITER TO USE SWIFT AND GET COMMISSIONS?
4,350,000 shares
"M/I Homes, Inc."
"Common Shares"
"We are offering 4,350,000 of our common shares. "
"The underwriters expect to deliver the common shares on or about May 26, 2009."
"Joint bookrunning managers"
"Citi J.P.Morgan
Co-managers"
Credit Suisse The Huntington Investment Co. JMP Securities
Morgan Keegan & Company, Inc. PNC Capital Markets LLC
May 19, 2009
"MATERIAL UNITED STATES FEDERAL INCOME TAX CONSEQUENCES TO NON-UNITED STATES "
'HOLDERS OF OUR COMMON SHARES"
"No ruling has been or is expected to be sought from the IRS with respect to the matters discussed below, and there can be no assurance that the IRS will not take a contrary position regarding the tax consequences of the acquisition, ownership or disposition of our common shares, or that any such contrary position would not be sustained by a court. "
UNDERWRITING
"Citigroup Global Markets Inc. and J.P. Morgan Securities Inc. are acting as joint book-runners for this offering. "
"PNC offers a comprehensive range of international banking solutions to help your company operate around the world. "
Incoming Wire Transfer Instructions:
"Incoming wire transfers must be sent to the correct PNC Bank ABA routing number assigned to your geographic location to be credited to your PNC account"....
"SWIFT"
"SWIFT enables its users to exchange automated, standardized financial information securely and reliably, thereby lowering costs, reducing operational risk and eliminating operational inefficiencies. Whether you are considering the use of SWIFT FileAct to fulfill your company's file transmission connections or simply need prior and/or current day account reporting via SWIFT Statements, as an active member of SWIFT, PNC can provide those services."
""Funds Transfer
Send funds for same-day settlement transactions and delivery of related information "
Click here: https://www.pnc.com/webapp/unsec/Requester?resource=/wcm/resources/file/ebd1f80005ee7ee/SwiftNet_0308.pdf
5-24-2009 @ 7:59PM
mrglass2 said...
go to saverdollar.org for the real truth
5-25-2009 @ 11:46AM
JCH said...
How much TARP money was loaned to to the bank? How much money did the government get back?
You have an odd definition of "money down the drain".
TARP was created to stabilize the financial markets so that Americans by the tens of million would not lose their jobs. Without it unemployment, right now, would be in excess of 20%. The ungrateful - poorly served by the media - taxpayer is getting tremendous value out of TARP. Every dollar of TARP will be paid back, and the government/taxpayer will earn money on the 700 billion.
Obviously a bank that has paid back its TARP funding in just a few months had a special plea under a taxpayer reward system that was based repayment in up to 5 years. I think treasury did the right thing by these small banks.
5-25-2009 @ 3:43PM
ij70 said...
@JCH
You are mistaken. TARP is keeping banks afloat, but it does not help the rest of us. I have all my money in local credit union because I get better interest then from Wells Fargo or 5/3 Bank. If these banks want my money, they better show me their appreciation.
Mr. Obama gave them my tax money, I can not do anything about that. But I am not giving these banks the rest of my money, the money I control directly.
5-25-2009 @ 6:23PM
JCH said...
First, it was President Bush who authorized the loaning of 700 billion, TARP. Obama's team arrived with 350 left to loan, and to date Geithner has loaned about 240 of the 350 billion.
Each and every American benefits every second of every hour from the fact that TARP prevented 20% to 40% unemployment, and that the actions of the Treasury, Federal Reserve, and FDIC have stabilized an economy that was in free fall.
5-26-2009 @ 1:28AM
Jill Schottenstein said...
SHOULD THE SEC APPROVE THIS FILING?
IN THE PAST THEY HAVE NOT READ NO ACTION LETTERS PARTICULARLY ONE DATED 2-28-03 MISSING ATTACHMENTS SUCH AS THE OPERATING AGREEMENT...
4,350,000 shares
M/I Homes, Inc.
Common Shares
"We are offering 4,350,000 of our common shares. "
"The underwriters expect to deliver the common shares on or about May 26, 2009."
Joint bookrunning managers
Citi J.P.Morgan
Co-managers
Credit Suisse The Huntington Investment Co. JMP Securities
Morgan Keegan & Company, Inc. PNC Capital Markets LLC
May 19, 2009
"MATERIAL UNITED STATES FEDERAL INCOME TAX CONSEQUENCES TO NON-UNITED STATES "
'HOLDERS OF OUR COMMON SHARES"
"No ruling has been or is expected to be sought from the IRS with respect to the matters discussed below, and there can be no assurance that the IRS will not take a contrary position regarding the tax consequences of the acquisition, ownership or disposition of our common shares, or that any such contrary position would not be sustained by a court. "
UNDERWRITING
"Citigroup Global Markets Inc. and J.P. Morgan Securities Inc. are acting as joint book-runners for this offering. "
"We and the underwriters named below have entered into an underwriting agreement covering the common shares to be sold in this offering. Each underwriter has severally agreed to purchase, and we have agreed to sell to each underwriter, the number of common shares set forth opposite its name in the following table. "
Number of shares
Citigroup Global Markets Inc.
1,848,750
J.P. Morgan Securities Inc.
1,848,750
Credit Suisse Securities (USA) LLC
130,500
The Huntington Investment Co.
130,500
JMP
Name
Securities LLC
130,500
Morgan Keegan & Company, Inc.
130,500
PNC Capital Markets LLC
130,500
Total
4,350,000
The underwriting agreement provides that if the underwriters take any of the shares presented in the table above, then they must take all of the shares.
"In connection with sales to underwriters, the underwriters may be deemed to have received compensation from us in the form of underwriting discounts or commissions and may also receive commissions from purchasers of the securities for whom they may act as agents.
Therefore, we cannot assure you that the securities will have a liquid trading market.
"Unless otherwise indicated in the applicable prospectus supplement or confirmation of sale, the purchase price of the securities will be required to be paid in immediately available funds in Columbus, Ohio or New York City, New York. "
'This prospectus is part of a registration statement that we filed with the SEC relating to the debt securities, common shares, preferred shares, depositary shares and warrants that may be offered hereunder'...
"Citigroup Global Markets Inc.
J.P. Morgan Securities Inc.
As Representatives of the
several Underwriters listed
in Schedule 1 hereto
c/o Citigroup Global Markets Inc.
388 Greenwich Street
New York, New York 10013"
"Ladies and Gentlemen:"
"M/I Homes, Inc., an Ohio corporation (the Company), proposes to issue and sell to the several Underwriters listed in Schedule 1 hereto (the Underwriters), for whom you are acting as representatives (the Representatives), an aggregate of 4,350,000 common shares, par value $0.01 per share, of the Company (the Underwritten Shares) and, at the option of the Underwriters, up to an additional 650,000 common shares of the Company (the Option Shares). The Underwritten Shares and the Option Shares are herein referred to as the Shares. The common shares of the Company to be outstanding after giving effect to the sale of the Shares are referred to herein as the Stock.
"c) Payment for the Shares shall be made by wire transfer in immediately available funds to the account specified by the Company to the Representatives in the case of the Underwritten Shares, at the offices of Cahill Gordon & Reindel LLP, 80 Pine Street, New York, New York, 10005 at 10:00 A.M., New York City time, on May 26, 2009, or at such other time or place on the same or such other date, not later than the fifth business day thereafter, as the Representatives and the Company may agree upon in writing or, in the case of the Option Shares, on the date and at the time and place specified by the Representatives in the written notice of the Underwriters election to purchase such Option Shares. "
Payment for the Shares to be purchased on the Closing Date or the Additional Closing Date, as the case may be, shall be made against delivery to the Representatives for the respective accounts of the several Underwriters of the Shares to be purchased on such date in definitive form registered in such names and in such denominations as the Representatives shall request in writing not later than two full business days prior to the Closing Date or the Additional Closing Date, as the case may be, with any transfer taxes payable in connection with the sale of such Shares duly paid by the Company. Delivery of the Shares shall be made through the facilities of The Depository Trust Company (DTC) unless the Representatives shall otherwise instruct. The certificates for the Shares will be made available for inspection and packaging by the Representatives at the office of DTC or its designated custodian not later than 1:00 P.M., New York City time, on the business day prior to the Closing Date or the Additional Closing Date, as the case may be."
"Independent Accountants. Deloitte & Touche LLP, who have reported on the audited financial statements of the Company and its consolidated Subsidiaries and whose report with respect to such audited consolidated financial statements is included or incorporated by reference in the Preliminary Prospectus, Prospectus and the Registration Statement, are independent public accountants with respect to the Company within the meaning of the Act and the rules and regulations promulgated thereunder and Rule 3600T of the Public Company Accounting Oversight Board."
(DTC WAS THE TRANSFER AGENT FOR MI HOMES IN A PRIOR SEC FILING)
"one difference, we have the money and you dont"
IM dated 2/7/2003 from rrubsy84 aka Bradley Kastan
"trust me lady you aren't getting anything"
'i happen to be a member of the family'
"i am a member of the family and trust me, you will pay"
'one difference, we have the money and you dont'
"Bradley Roger Kastan. The Division suspended the Ohio Securities Salesman License of
Bradley Roger Kastan, of Columbus, Ohio, for a period of two months commencing on March 8, 1993 and ending on May 8, 1993. The Division imposed the suspension upon learning that Kastan, a salesman affiliated with PaineWebber Incorporated, had earlier been suspended for two months under the terms of a Stipulation of Facts and Consent to Penalty with the New York Stock Exchange,Inc."
(BRAD KASTAN ALSO WORKED AT UBS AND HANDLED ACCOUNTS FOR UBS/AG)
"MICHAEL HARKINS, SECRETARY OF STATE OF THE STATE OF DELAWARE DO HEREBY CERTIFY THE ATTACHED IS A TRUE AND CORRECT COPY OF THE CERTIFICATE OF MERGER OF " M/I SCHOTTENSTEIN HOMES, INC." AS RECEIVED AND FILED IN THIS OFFICE THE TWENTY NINTH DAY OF JUNE, A.D. 1998, AT 9 O'CLOCK A.M."
AUTHENTICATION
DATE 06/29/1998
CERTIFICATE OF THE SECRETARY OF M/I SCHOTTENSTEIN HOMES, INC. (A DELAWARE CORP)
"I, KERRII B ANDERSON, THE SECRETARY OF M/I SCHOTTENSTEIN HOMES, INC, HEREBY CERTIFY THAT THE AGREEMENT AND PLAN OF MERGER CORP. TO WHICH THIS CERTIFICATE IS ATTACHED, AFTER HAVING BEEN FIRST DULY SIGNED ON BEHALF OF THE CORP. BY THE PRESIDENT, WAS DULY APPROVED AND ADOPTED AT A MEETING OF THE STOCKHOLDERS OF M/I SCHOTTENSTEIN HOMES, INC.,HELD ON JUNE 28, 1990, BY THE HOLDERS OF A MAJORITY OF THE OUTSTANDING STOCK ENTITLED TO VOTE THEREON."
WITNESS MY HAND AND THE SEAL OF SAID M/I SCHOTTENSTEIN HOMES INC. THIS 28TH DAY OF JUNE,1990."
Click here: http://www.delawareonline.com/newsjournal/local/2004/03/pdf/0322.harkins.pdf
www.delawareonline.com : The News Journal : LOCAL : Bridge officials spent $1 million from tolls on trips, social
DOES YOUR HOME HAVE EXPOSURE TO THIS?
Associated Press
"MARYSVILLE, Ohio -- A revolutionary fertilizer blend that helped transform the Scotts Co. into the nation's biggest and best-known producer of do-it-yourself lawn and garden products also contributed to the deaths of at least five workers, the Columbus Dispatch reported. "
"Dozens of other current and former workers have been sickened by unknowingly inhaling microscopic asbestos fibers from the W.R. Grace and Co. mine near Libby while on the job, the newspaper reported in its Sunday editions."
"The report cited court documents, regulatory reports, workers' compensation claims, medical records and interviews. The workers were exposed to a pinkish tan ore called vermiculite. It has been used in fertilizer, sold straight and mixed with potting soil to retain moisture. "
"But the newspaper said vermiculite used by Scotts was -- and still might be -- contaminated with tremolite, a rare but lethal form of asbestos that contributed to the deaths of the workers who handled the materials at the Scotts plant in this city about 30 miles northwest of Columbus. "
"Exposure to asbestos can cause asbestosis, an incurable lung disease. Two of the five died of asbestos-related lung cancer more than 25 years after they first were exposed to the fibers. The three others died of lung and heart disease aggravated by asbestos. "
"Asbestos contamination in Libby, where the now-defunct mine was located, is so widespread that the Environmental Protection Agency has suggested the little town ought to be declared a Superfund site. Dozens of asbestos-related deaths and illnesses in Libby have been linked in recent years to the Grace vermiculite mine, which shut down in 1990. ".......
5-26-2009 @ 2:58AM
ij70 said...
JCH, good point.
5-26-2009 @ 6:42PM
estrellafin said...
warrants are not stock....the payment paid was what was received...Once again the yellow journalistic media pretends it knows more than anyone....bugger them all
7-06-2009 @ 10:24AM
geza72 said...
very good
7-09-2009 @ 9:30PM
Espen Robak said...
While there has been much debate about the fairness of the price banks are paying to repurchase their TARP warrants, there has been little analysis based on actual valuation of the warrants.
However, Pluris Valuation Advisors has just completed a study valuing the warrants of all 265 public banks participating in TARP. Using data accumulated from several years worth of TARP transactions, Pluris found that -- with the exception of Old National Bancorp -- purchase prices have been close to the "fair value" of the warrants.
A copy of the study is available here: http://www.plurisvaluation.com/site/liquistat.html#2. The study will be updated regularly as banks continue to repurchase their warrants.
You can also download a white paper on valuing warrants here: http://www.plurisvaluation.com/site/pressroom/whitepapers.html.
Espen Robak, President