Morgan Stanley has agreed with the US Department of the Treasury to repurchase, for $950 million, a warrant previously issued to the US Treasury by the firm under the TARP Capital Purchase Program and related to the US Treasury’s $10 billion investment in the company. This represents a total of $1.2 billion paid to the US government for its investment, including dividends.
John Mack, chairman and CEO of the Morgan Stanley, said: “Morgan Stanley is pleased to be repurchasing this warrant and providing US taxpayers a 20 percent annualized return on their investment in our company. As we move forward, we believe it is vital for our industry to recognize the lessons of last year’s financial crisis and work with our regulators, legislators and other public officials to make the changes necessary to ensure a similar crisis never occurs again.”
The bank has added that in June, Morgan Stanley repaid the US Treasury $10 billion for the TARP money it had received through the government’s Capital Purchase Program.
