Will There Be a PENALTY For Early Payment Of TARP Funds?

[LaydeeBug]

If someone pays their mortgage early, there is often a penalty for doing so. What do you think the penalty should be for these mooks?

[dkf]

1. The provisions are already set.

They can't simply pay it back, they need to replace it with more equity, i.e. issuing more stock.

And the federal government didn't give these banks a chance to refuse. Ironically they forced them to accept it, so that they wouldn't tar the weaker banks by pointing them out.

Which goes back to prepayment penalties for people who took out mortgages...I wonder how many knew these penalties existed and had read through their paperwork front to back with a decent understanding of what they were signing?

The financial knowledge of the average person is abysmal. I'm not sure who should be educating people in these areas, but it isn't being done and a lot of people simply won't bother to do this on their own.

[nykym]

2. They should be charged

the interest rate they charge each other.