Great breakdown Dave. Bank TARP hasnt been a total loss for the American taxpayer. But I wonder how financing plays into the return. It wasnt free for the treasury to get those billions.
Look at the return on treasury bills vs what TARP is charging.
Treasuries were going for about 0.40% +/- on a 1 year, 0.80% +/- on a 2 year, 1.34% on a 3 year. Spread against FNM and FRE TARP would probably be about 9% on $100Bil (using 2 year +). Spread against BAC and other banks would be about 2.5%.
