Morgan Stanley Agrees to Repurchase Warrant from the U.S. Government
Aug 6 2009 | New York
Morgan Stanley (NYSE: MS) today announced that it has agreed with the U.S. Department of the Treasury to repurchase, for $950 million, a warrant previously issued to the U.S. Treasury by the Firm under the TARP Capital Purchase Program and related to the U.S. Treasury's $10 billion investment in the company. This represents a total of $1,268 million paid to the U.S. government for its investment, including dividends.
"Morgan Stanley is pleased to be repurchasing this warrant and providing U.S. taxpayers a 20 percent annualized return on their investment in our company. We appreciate the critical role that the U.S. government played last fall in helping stabilize the banking industry and financial markets at a moment of unprecedented crisis. 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," said John J. Mack, Chairman and CEO of the Firm.
In June, Morgan Stanley repaid the U.S. Treasury $10 billion for the TARP money it had received through the government's Capital Purchase Program.
Morgan Stanley is a leading global financial services firm providing a wide range of investment banking, securities, investment management and wealth management services. The Firm's employees serve clients worldwide including corporations, governments, institutions and individuals from more than 1,200 offices in 37 countries. For further information about Morgan Stanley, please visit www.morganstanley.com.