Abstract

http://ssrn.com/abstract=1436649
 
 

References (10)



 
 

Citations (1)



 


 



Lessons for the TARP Warrants from 1983 Chrysler Auction


Linus Wilson


University of Louisiana at Lafayette - College of Business Administration

December 31, 2009

Academy of Accounting and Financial Studies Journal, Vol. 16, No. 2, pp. 69-76, 2012

Abstract:     
The U.S. Treasury began auctioning its warrant holdings in December 2009. Nevertheless, this was not the first large auction of warrants. The U.S. Treasury auctioned its holdings of warrants from the bailout of Chrysler Motors in 1983. That warrant auction resulted in an implied volatility of less than zero, but it generated higher price than the management of Chrysler was willing to pay in negotiations. The similarities and differences between this auction and the more recent auction of the JP Morgan Chase warrants, which were issued as part of the Troubled Asset Relief Program (TARP), are discussed.

Number of Pages in PDF File: 14

Keywords: auctions, bailout, banks, banking, Capital Purchase Program, Chrysler, EESA, Emergency Economic Stabilization Act, JP Morgan, options, TARP, Troubled Asset Relief Program, valuation, warrants

JEL Classification: A44, G01, G13, G21, G28, G32, G38

Accepted Paper Series


Download This Paper

Date posted: July 23, 2009 ; Last revised: April 15, 2012

Suggested Citation

Wilson, Linus, Lessons for the TARP Warrants from 1983 Chrysler Auction (December 31, 2009). Academy of Accounting and Financial Studies Journal, Vol. 16, No. 2, pp. 69-76, 2012. Available at SSRN: http://ssrn.com/abstract=1436649

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: 1,584
Downloads: 198
Download Rank: 88,249
References:  10
Citations:  1

© 2014 Social Science Electronic Publishing, Inc. All Rights Reserved.  FAQ   Terms of Use   Privacy Policy   Copyright   Contact Us
This page was processed by apollo3 in 0.329 seconds