A Good Two Days, 10 Hours For A Sad Little Boy

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It's been a profitable week for Little Tim Geithner and the Treasury boys. Hot on the heels of the news that it's getting its money back from those deadbeats at Citigroup and Wells Fargo comes its successful sale of those zero-cost warrants it got from TCF Financial Corp., a Minnesota bank.
The Treasury turned a tidy $9.45 million profit on the TCF warrants, getting twice the minimum bid price of $1.50 apiece in a Dutch auction. The warrants don't expire for another nine years, during which time TCF's share price only has to rise $3.50 to make them worth exercising.
Yea, it's a drop in the bucket. Yea, there's still $60 billion in TARP money outstanding. But let's give this one to the little guy. He's already been overshadowed--not difficult, we understand--by Big Ben's big win and fancy Time magazine cover. But for the first time in a long time, it hasn't been a terrible, horrible, no good, very bad week for the Treasury Secretary. As of Wednesday morning, anyway.


So, Timmy, soak it in.

With the recent announcements on repayments, we are now on track to reduce TARP bank investments by more than 75%, while earning a healthy profit on that commitment.

Take a bow. And keep your head down while you're at it.
U.S. Treasury to net $9.45 mln from TCF warrants [Reuters]

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