Abstract

http://ssrn.com/abstract=1413442
 
 

References (18)



 
 

Citations (2)



 


 



A Model for Estimating the Cancellation Probabilities of TARP Warrants


Linus Wilson


University of Louisiana at Lafayette - College of Business Administration

December 31, 2009

Advances in Accounting Finance and Economics, Vol. 3, No. 1, pp. 1-15, 2010

Abstract:     
Under the Capital Purchase Program (CPP), U.S. taxpayers hold warrants issued by over 270 publicly traded banks. The provisions of the CPP allow for half of the warrants to be cancelled if the recipient bank issues enough preferred or common stock by the end of 2009. This paper develops a model to estimate the probability of a qualified equity issuance that is consistent with standard option pricing techniques. The model is based on the transaction costs of issuing new equity and can be solved numerically.

Number of Pages in PDF File: 20

Keywords: bailout, banks, banking, Capital Purchase Program, Emergency Economic

JEL Classification: G01, G13, G21, G28, G32, G38

Accepted Paper Series


Download This Paper

Date posted: June 4, 2009 ; Last revised: April 15, 2012

Suggested Citation

Wilson, Linus, A Model for Estimating the Cancellation Probabilities of TARP Warrants (December 31, 2009). Advances in Accounting Finance and Economics, Vol. 3, No. 1, pp. 1-15, 2010. Available at SSRN: http://ssrn.com/abstract=1413442 or http://dx.doi.org/10.2139/ssrn.1413442

Contact Information

Linus Wilson (Contact Author)
University of Louisiana at Lafayette - College of Business Administration ( email )
Department of Economics & Finance
214 Hebrard Blvd., Room 326
Lafayette, LA 70504-0200
United States
(337) 482-6209 (Phone)
(337) 482-6675 (Fax)
HOME PAGE: http://www.linuswilson.com
Feedback to SSRN


Paper statistics
Abstract Views: 2,215
Downloads: 401
Download Rank: 40,114
References:  18
Citations:  2

© 2014 Social Science Electronic Publishing, Inc. All Rights Reserved.  FAQ   Terms of Use   Privacy Policy   Copyright   Contact Us
This page was processed by apollo5 in 0.359 seconds