Morgan Stanley buys back warrants

NEW YORK — Morgan Stanley said Thursday it paid $950 million to buy back warrants from the government that could have eventually been converted to common shares in the bank.

New York-based Morgan Stanley issued the warrants to the Treasury Department as part of the $10 billion loan package it received under the Troubled Asset Relief Program.

In June, Morgan Stanley repaid the $10 billion loan, eliminating the outstanding preferred shares.

Between the repurchase of the warrants and dividends paid on the preferred shares, Morgan Stanley paid the government $1.27 billion.