Thread: TARP Bailout returns an 8.2% PROFIT!

Again, I'm still sticking by my theory that the only reason banks posted profits as quick as they did in this economy is because of overdraft fees.

People were broke, they overdrafted, banks charging ~$30 per overdraft = lots of cash for the banks.

So yea they made money, at the expense of the same taxpayers who helped bail them out.

Pretty easy to turn a profit when the taxpayer paid the banks to sell us bad paper. All they had to do was go about their normal trading business while we got stuck with the shitty assets.

They are still insolvent in many aspects regardless.

Only the government could come up with numbers this misleading.

But still Fibo.... even if the return is poor there is a return.

However, the economic stimulus cost more, did less and never intended any roi.

In purely relative terms TARP is far less bad.

The profit could have been a 1000% and it wouldnt have really mattered is my point.

The banks used all that money to appear solvent while raising more capital and accessing the nightly discount window to play in the casino.

Remember those magical quarters where the big banks posted only one or two loss days per quarter? In one quarter GS had over 10 100MM up days.

Its easy to play the market when you have unlimited margin and can start over from a blank slate.

That 8.2% wont really matter all that much when we start finding out that those sweet MBS deals we bought for par are basically worthless.

Lets see... we made a few points on 300B. But we lost our ass on several Tril.

Whooo Hoooo!

Originally Posted by Fibonacheech

The profit could have been a 1000% and it wouldnt have really mattered is my point.

The banks used all that money to appear solvent while raising more capital and accessing the nightly discount window to play in the casino.

Remember those magical quarters where the big banks posted only one or two loss days per quarter? In one quarter GS had over 10 100MM up days.

Its easy to play the market when you have unlimited margin and can start over from a blank slate.

That 8.2% wont really matter all that much when we start finding out that those sweet MBS deals we bought for par are basically worthless.

Lets see... we made a few points on 300B. But we lost our ass on several Tril.

Whooo Hoooo!

please see last sentence of previous post.... bad but less bad

Originally Posted by deepness

i'm as much of a fan of overdraft fees as the next person, but lucky 4 us the gov has passed legislation 2 stop those evil banks from doing it!

just 1 prob. the overdraft fees were a MAJOR source of profit 4 the banks & now they have 2 figure out another way, so guess what?

http://www.consumeraffairs.com/news0...r-be-free.html

most banks are or will inevitably get rid of free checking!! yeah, that means the average individual will pay anything from $60-$100 a yr 2 have a checking account, that's like having 2-3 overdrafts a yr!

You're absolutely correct, banks are going to see a big loss with all that lost revenue. Already I've had my card declined twice, so that law has already saved my ass $70, I'd gladly pay $60 if I had to for checking with the current law in place.

The only time checking is free nowadays is if you have direct deposit. While I agree there's a chance they'll start charging, they would all have to start charging, or it leaves them open to lose money to the other guy. I think it's unlikely.

I foresee them pushing their "Credit protection" plans on credit cards more, even though those are backed by visa etc, don't the banks get a cut of that?

So basically:

Step 1: Give banks shit load of money

Step 2: ???

Step 3: Profit!

well yeah...

I need coffee