Though many banks are eager to repay their federal lifelines, it might make more sense to let Uncle Sam keep the warrants issued as part of its bailout program.

That is certainly counterintuitive advice, given many executives' instincts. Surely, they should get the billions of dollars worth of warrants out of the Treasury Department's hands to erase the nationalization stigma and prevent loss of control to outsiders or dilution of common stock if the warrants are exercised, no?

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