JPMorgan (JPM) CEO Buying Warrants In The Open Market

JPMorgan Chase's (NYSE: JPM) Jamie Dimon is buying back the warrants the Government now holds to acquire more shares in his company, but he's doing it out in the open.

Unlike the other major banks, which gave warrants to the federal government in exchange for billions in capital under the Troubled Asset Relief Program, JPMorgan is expected to have its warrants sold in a public auction that would be run by the US Treasury.

This move contrasts with what other TARP recipients who have done. Those firms, which include Goldman Sachs (NYSE: GS), Morgan Stanley (NYSE: MS) and American Express (NYSE: AXP), have negotiated with the Treasury behind closed doors. This essentially means that the taxpayer is unable to find out if we received a good deal or not.

Jamie Dimon is offering to allow investors to see how these warrants are priced and how well Uncle Sam has done so far in valuing the warrants.

JPMorgan has argued they would rather conduct a sale out in the open market to ensure the price paid for the warrants isn't determined arbitrarily. They see a public auction as a good way to avoid scrutiny over how the bank and the government arrived at a price for the warrants, according to the NY Post.

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