TARP Repayments

[davelj]

[quote=bubba99]Leave us not forget that the fed is lending to banks for day to day operations at 0% to 0.5%. The banks are lending that money out at 10% to 30%. Any idiot could earn on that point spread.
[/quote]

Yeah, but… first, banks can’t fund their operations with fed funds alone, and second, only a small part of any bank’s loan portfolio is yielding between 10% and 30%. The average cost of funds for banks right now is about 2.25%, and the average yield on assets is around 6%. So, that’s a 375 bp spread before operating expenses, credit costs and taxes. Clearly, not “any idiot” can make money under these conditions, and many of them are not.

[davelj]

[quote=davelj]
I said many moons ago (I’ll try to find the thread) that we’d likely get back 80%-110% of the bank-related TARP. I think I can tighten that band to 90%-110%.
[/quote]

Found it: http://piggington.com/tarp_has_lost_40_since_inception

While we’re not out of the woods by any stretch and I expect continued ugliness and perhaps even a mini-crisis… I think the hysteria over bank-related TARP by certain Piggs in this thread was misplaced. But, again, we’re still only in the middle innings of this thing.

[davelj]

[quote=davelj]
I said many moons ago (I’ll try to find the thread) that we’d likely get back 80%-110% of the bank-related TARP. I think I can tighten that band to 90%-110%.
[/quote]

Found it: http://piggington.com/tarp_has_lost_40_since_inception

While we’re not out of the woods by any stretch and I expect continued ugliness and perhaps even a mini-crisis… I think the hysteria over bank-related TARP by certain Piggs in this thread was misplaced. But, again, we’re still only in the middle innings of this thing.

[davelj]

[quote=davelj]
I said many moons ago (I’ll try to find the thread) that we’d likely get back 80%-110% of the bank-related TARP. I think I can tighten that band to 90%-110%.
[/quote]

Found it: http://piggington.com/tarp_has_lost_40_since_inception

While we’re not out of the woods by any stretch and I expect continued ugliness and perhaps even a mini-crisis… I think the hysteria over bank-related TARP by certain Piggs in this thread was misplaced. But, again, we’re still only in the middle innings of this thing.

[davelj]

[quote=davelj]
I said many moons ago (I’ll try to find the thread) that we’d likely get back 80%-110% of the bank-related TARP. I think I can tighten that band to 90%-110%.
[/quote]

Found it: http://piggington.com/tarp_has_lost_40_since_inception

While we’re not out of the woods by any stretch and I expect continued ugliness and perhaps even a mini-crisis… I think the hysteria over bank-related TARP by certain Piggs in this thread was misplaced. But, again, we’re still only in the middle innings of this thing.

[davelj]

[quote=davelj]
I said many moons ago (I’ll try to find the thread) that we’d likely get back 80%-110% of the bank-related TARP. I think I can tighten that band to 90%-110%.
[/quote]

Found it: http://piggington.com/tarp_has_lost_40_since_inception

While we’re not out of the woods by any stretch and I expect continued ugliness and perhaps even a mini-crisis… I think the hysteria over bank-related TARP by certain Piggs in this thread was misplaced. But, again, we’re still only in the middle innings of this thing.

[sdrealtor]

dlj
Thanks for taking the time to respond in a thoughtful and clear manner. I for one appreciate your presence her as you add to my understanding of many things quite often.
Cheers

sdr

[sdrealtor]

dlj
Thanks for taking the time to respond in a thoughtful and clear manner. I for one appreciate your presence her as you add to my understanding of many things quite often.
Cheers

sdr

[sdrealtor]

dlj
Thanks for taking the time to respond in a thoughtful and clear manner. I for one appreciate your presence her as you add to my understanding of many things quite often.
Cheers

sdr

[sdrealtor]

dlj
Thanks for taking the time to respond in a thoughtful and clear manner. I for one appreciate your presence her as you add to my understanding of many things quite often.
Cheers

sdr

[sdrealtor]

dlj
Thanks for taking the time to respond in a thoughtful and clear manner. I for one appreciate your presence her as you add to my understanding of many things quite often.
Cheers

sdr

[ucodegen]

To use an example, lets say that F&F charge off 10% of their portfolio (which would be a big number). Further, let’s say the average yield on the remaining 90% of their book is 5.5% and their funding costs (now borrowing at govt rates) are 2.5%.

I think your estimate of borrowing costs for FRE/FNM are almost double what they currently are. Is some of that for long term borrowing that has not yet rolled over?

http://www.reuters.com/article/idCNN077795720091207?rpc=44

[ucodegen]

To use an example, lets say that F&F charge off 10% of their portfolio (which would be a big number). Further, let’s say the average yield on the remaining 90% of their book is 5.5% and their funding costs (now borrowing at govt rates) are 2.5%.

I think your estimate of borrowing costs for FRE/FNM are almost double what they currently are. Is some of that for long term borrowing that has not yet rolled over?

http://www.reuters.com/article/idCNN077795720091207?rpc=44

[ucodegen]

To use an example, lets say that F&F charge off 10% of their portfolio (which would be a big number). Further, let’s say the average yield on the remaining 90% of their book is 5.5% and their funding costs (now borrowing at govt rates) are 2.5%.

I think your estimate of borrowing costs for FRE/FNM are almost double what they currently are. Is some of that for long term borrowing that has not yet rolled over?

http://www.reuters.com/article/idCNN077795720091207?rpc=44

[ucodegen]

To use an example, lets say that F&F charge off 10% of their portfolio (which would be a big number). Further, let’s say the average yield on the remaining 90% of their book is 5.5% and their funding costs (now borrowing at govt rates) are 2.5%.

I think your estimate of borrowing costs for FRE/FNM are almost double what they currently are. Is some of that for long term borrowing that has not yet rolled over?

http://www.reuters.com/article/idCNN077795720091207?rpc=44

[Author]

Posts