Bank Stock Warrants Undervalued, Panel Says

The Treasury Department could be undervaluing billions of dollars worth of stock warrants that it received from banks that took out loans through the government’s $700 billion bailout program, a Congressional oversight panel said on Friday.

The panel estimated that the government’s approach could cost taxpayers as much as $2.1 billion if it were to be applied to all the banks and Wall Street firms that have borrowed a total of $240 billion since last fall.