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Except most of the banks have paid back TARP. Most major banks are back to 10+ % profit margins (only one lower I found was BAC). Out of the 700 billion TARP f
by c2 15y ago
Except most of the banks have paid back TARP. Most major banks are back to 10+ % profit margins (only one lower I found was BAC).
Out of the 700 billion TARP fund, only 51 billion remains outstanding (as of September last year), which is larger then the 41 billion number you were floating around:
http://online.wsj.com/article/SB10001424052748703431604575522242672430182.html http://online.wsj.com/article/SB1000142405274870343160457552...
I'm not saying all banks will be fine if Greece "defaults" (remember in this case "defaulting" implies restructed debt), but causing a US recession? Highly highly unlikely.
- dpapathanasiou 15y agoWe agree to disagree. But even according to the article you posted, bank balance sheets are still weak. Losing $41 billion (or more, possibly, given the nature of these derivatives) is not going to be good news for them. While technically not in recession, the economy is not thriving, either, and so one blow like this may indeed push it back into recession.