The Treasury says banks that have paid back the TARP will be able to bid for the warrants given to the government in exchange for the government investments. They will price the warrants on market prices, models an outside consultants. If the bank in question does not want to buy back its own warrants, they will be auctioned over time.
Like allowing banks to payback the TARP funds, this measure is a modest vote of confidence that the banking system is healing.
