One of the biggest issues regarding the TARP exit plans now underway is how much banks would pay to buy back warrants from the government. There has been a lot of rancor about whether Joe Taxpayer would get a good deal. The Treasury has just laid out some guidelines that aim to retrieve fair market value.

As explained by the AP, banks will have 15 days from the day they repaid their TARP funds to submit an offer. Treasury will then have 10 days to respond. If it objects to the offers, it can make a counteroffer, using various pricing methods. If a price cannot be agreed upon, appraisers for each side will be appointed. If those appraisers remain apart, then a third appraiser will be brought in. This much is clear: The government will not own the warrants long term, even though they might prove a decent investment someday. If a deal cannot be struck, Treasury will auction the warrants to the public. 

For more:
- here's the article

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