Dumb question here: Do TARP recipients have to actually pay that money back?

[bluestateguy]

Have any recipients started making repayments?

Is there a timetable for them to pay their loans back?

I seem to remember the airlines bailout after 9/11 when much of the money was outright welfare, not subject to being paid back.

[stillcool]

1. I remember hearing that when Chrysler(?)

or one of the auto makers was bailed out in the 70's they paid it back with interest, which was used to shoot down the Republicans view that bailing out the auto industry was pissing money into the wind. I'm not sure about the financial industries but somehow I don't think so. I think some may go belly-up anyway, and merge into bigger 'to big to fall' industry giants.

[HereSince1628]

2. No, it was given out as CEO bonuses. We all know CEO spending drives the economy

so it really doesn't matter...The money is going trickle down and grow the economic forest...The transpiration of liquid assets from the money trees is going to then fall for 40 days and 40 nights, until all the poor people who haven't invested in Arks will drown.

Just like the Capitalist Bible says.

[prayin4rain]

3. Ha-ha n/t

[Frustratedlady]

4. Is that trickle down to the Swiss, Mariana Islands, Dubai?

I doubt we'll get wet.

[david13]

7. Yes

it will trickle down. So there might be some crumbs left for us after all.
dc

[Democrats_win]

5. TARP money went to purchase stakes in big banks like CITIbank.

So in theory one day we should get the money back. However, the stock of these banks has gone down. Hopefully the stock will go back up.

Recall that the TARP money did not go to purchase Troubled Assets as was originally planed (so far). That plan meant that we'd purchase some of the loans from the banks. Then we'd sell those troubled assets to recover our money. If these sales were made at the right time, we wouldn't lose too much.

The big question is what banks like CITI did with the money. I worry that the money went to the 400 trillion dollar derivative market which is nothing but a black hole.

[david13]

6. Depends

on what you mean by "have to".
dc