Buffett, Berkshire (BRK-A) in Sad Goodbye to Goldman (GS) Preferred

Liz Claman and Charles Gasparino broke down some of the response of Warren Buffett in this video over the $5 billion-plus sale of preferreds Berkshire Hathaway (NYSE:BRK-A) had owned in Goldman Sachs (NYSE:GS), which generated a cool $500,000 annually for the company.

Yet Berkshire still owns about $2 billion in warrants in the giant bank, which they have time to sit on until Goldman surges again, which is inevitable.

They also noted that Goldman CEO Lloyd Blankfein wants out of his position, as the scrutiny appears to be taking the enjoyment out of running the business.

Treasury Sells 465.1 Million Citigroup (NYSE:C) Warrants

The Treasury Department announced they've sold the final 465.1 million Citigroup (NYSE:C) warrants to acquire common shares in the giant bank. They recouped $312.2 million from the sale.

Tim Massad, Treasury's acting assistant secretary for financial stability, said in a statement, "As we exit our investments in private companies and recover taxpayer dollars, it's clear that the cost of the TARP program will be a fraction of what many had once feared during the depths of the crisis."

Of course the cost was much higher than that, as the government should never have been involved in the situation in the first place, and should have allowed the market sort things out, with those companies run well surviving and taking over the assets of failing banks, making the financial sector much stronger.

Now the government has got a taste of more power, and are poised to interfere in the private sector again, whenever they perceive the need to.

Citigroup and other banks accepting TARP funds were forced by the Treasury to offer warrant in order to generate maximum returns on taxpayers' money. That was also to alleviate the anger of the public at the government going beyond its mandate it in the first place.

Citigroup was trading at $4.84, up $0.01, or 0.31 percent, as of 11:17 AM EST.

Treasury Auctioning Citigroup (NYSE:C) TARP Warrants Tuesday

Warrants received by the Treasury from Citigroup (NYSE:C) during the financial crisis will be auctioned on Tuesday, with Deutsche Bank AG (NYSE:DB) being the auction agent in the sale.

The Treasury said in its statement, “The proceeds of this sale will provide an additional return to the American taxpayer from Treasury’s investment in the company beyond the dividend payments it received on the related preferred stock and the profit received from the sale of shares of common stock and trust preferred securities of the company.”

The statement said 0n Tuesday the Treasury will sell 255 million “A” warrants with a minimum bid price of 60 cents and 210 million “B” warrants with a minimum bid of 15 cents.

In order to received taxpayer dollars, the Treasury required warrants as a form of compensation. Holders of the warrants had the option of acquiring shares at a set price for a period of 10 years.

Lenders also have an option to buy the warrants back if they choose.

Citigroup was trading at $4.8750, down $0.015, or 0.31 percent, as of 12:36 PM EST.

Citigroup (NYSE:C) Finally to Get Government Off its Neck Completely

The U.S. Treasury announced Friday it will be selling its last stake in Citigroup (NYSE:C) via the warrants they still own in the giant financial institution.

Treasury said, "Apart from the warrants, Treasury has fully sold all other securities issued to it by Citigroup Inc., and each of the other financial institutions has fully repurchased Treasury´s preferred stock investment. The warrant sales anticipated during the current quarter, if consummated in full, would represent Treasury´s disposition of its remaining holdings in these financial institutions. The proceeds of these sales will provide an additional return to the American taxpayer from Treasury´s investments in these financial institutions beyond the dividend payments it received on the related preferred stock."

Those holding a warrant are given the right but not the requirement, to acquire or sell a security at a fixed price on or before a fixed date.

Treasury will sell the warrants via an auction, and it won't be known until then what they will get for the securities.

Citigroup was trading at $5.12, up $0.09, or 1.69 percent, as of 11:25 AM EST.

AIG (NYSE:AIG) Board Declares Dividend of 75 Million Warrants

American International Group's (NYSE:AIG) Board of Directors declared a dividend of about 75 million warrants to acquire common stock of the company at $45 a share.

Canaccord said, "The insurer announced on Friday that its Board of Directors has conditionally declared a dividend of approximately 75 million warrants to purchase shares of AIG common stock at $45 per share, to be distributed on January 19, 2011. The shares will be given to AIG’s common shareholders of record as of January 13, 2011, although the U.S. Department of the Treasury will not receive warrants in this distribution. The warrants are being issued as part of a series of integrated transactions to recapitalize AIG initially announced on September 30, 2010. “This marks continued progress for AIG towards completing the recapitalization and furthering our work to repay the U.S. taxpayer,” said Robert H. Benmosche, AIG President and Chief Executive Officer. “We are working diligently to complete this plan in the coming weeks.” Their issuance is conditional on AIG and its government overseers confirming by January 12 that they will close on an exit strategy plan on January 14. That plan will see AIG repaying its debt to the Federal Reserve Bank of New York and transferring some obligations to the Treasury Department that will be repaid over time with proceeds from asset sales. If these conditions are satisfied, AIG common shareholders will be issued 0.533933 warrants for every share of AIG common stock owned on the record date."

AIG closed Monday at $57.39, losing $3.79, or 6.19 percent.

Goldcorp (TSE:G) Acquires Warrants and Shares from Terrane Metals (TSE:TRX)

Goldcorp Buys Warrants and Shares from Terrane Metals

Goldcorp (TSE:G) has acquired $97.6 million in shares and warrants from Terrane Metals (TSE:TRX), helping them fund the Mt. Milligan mine in British Columbia. A group of underwriters also were part of the acquisition of shares and warrants.

National Bank Financial Inc. led the group of underwriters who will acquire 63.6 million units, consisting of one common share and a half common share purchase warrant, for C$1.10 each. Goldcorp has agreed to purchase 27.3 million of the same units made up of common shares and warrants.

Construction on the mine, which has production estimates of 89 million pounds of copper and 262,100 ounces of gold annually for the first six years of mining, is scheduled to begin in July. The mine has a life-span of 22 years.

Terrane Metals is willing to sell a portion of Mt. Milligan to raise more needed capital, with the buyer getting the rights to the metal produced at the part of the project sold.