<< American Express Reports Earnings from Continuing Operations of $342 Million; EPS of $0.09 Includes $0.18 Reduction from Repurchase of Preferred Shares | Visa Inc. Sets Software Security Deadlines >>

American Express Repurchases Warrants from U.S. Department of Treasury

by swmerchant 31. July 2009 05:12

NEW YORK, July 29, 2009 -- American Express announced today that it has repurchased the warrants issued to the United States Department of Treasury as part of the Capital Purchase Program (CPP) for $340 million.

In June, American Express repurchased $3.39 billion of preferred shares issued under the CPP. The company paid a total of $74.4 million in dividends to the U.S. Treasury. Taking into account the dividends and the repayment of warrants -- which total $414.4 million -- U.S. Treasury earned an annualized 26 percent return on its investment. Read More

Be the first to rate this post