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Is the recovery by GSB taxable? The warrants are worth the amount of recovery, net of costs and taxes.

FWIW, someone on Yahoo calculated the value of the warrants subject to a 42% corporate tax rate. I know next to zip about tax law. Okay, make that zip.

If that analysis is correct, then the top upside for the warrants may be close to 11.66. If a 1 billion recovery , a reasonalble guess (or as reasonable as any, in the lower range of what GSB is seeking) netted 11.66 these things would be a screaming buy at $5. If you factored in a 42% tax rate, a 1 billion $ award would make the warrant worth @6.75

I think the Gov can appeal only the amount of damages, having taken the underlying case to the supreme court and losing, so an appeal can only cause delay, possibly of one more year.
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