> In fact, most of the banks MADE money, in the form of TARP (and cheap loans from the Fed).
Claiming the banks made money off of TARP is like claiming I made $600k last year because I took out a mortgage. TARP provided loans to banks that were paid back with interest.
Actually up front you are correct. BUT the banks also used those loans (which by the way, were granted with VERY favorable terms at VERY low rates) to pay bills due to other banks
Take AIG for example.. Banks made billions on payouts from AIG. Where did the money for those payouts come from? Us. The American taxpayer. So not only did the banks get their bad debts marginalized (at our expense. example: look at the sale of Bear Stearns to JP. Who assumed most of Bears' junk debt in that deal.. that's right, the tax payer.); they also got cheap cash at cheap rates; and all the inter-banks fees were paid.
In other words, the whole mess was a giant shell game. I have no doubt that some bankers knew exactly what they were doing during the whole mess. They played the Fed, Treasury and us.
And the got away with it. And they will again.
Make no mistake, the game is rigged. And not in your (the masses) favor.
Claiming the banks made money off of TARP is like claiming I made $600k last year because I took out a mortgage. TARP provided loans to banks that were paid back with interest.