In another sign that the government's emergency financial programs are being reeled in, the Treasury Department said Thursday it will auction off warrants for three banks that it acquired as part of last fall's bailouts.
Treasury will auction warrants for JPMorgan Chase, Capital OneFinancial and TCF Financial. over the next month. The three banks received bailouts totaling $28.9 billion, which they have since repaid.
Warrants are financial instruments that allow the holder to buy stuck in the future at a fixed price.
Treasury got the warrants as a deal-sweetener when it injected capital into the banks. They allow taxpayers to benefit from the upside of a financial recovery supported by billions of their dollars.