Reported in a newsletter:
Goldman, Sachs and Morgan Stanley are rumored to be repaying their $10Bn TARP 'loan/investments' to the Feds.
There's more, of course.
Treasury and the Fed are discussing establishing a "bad Bank"--a Federal Gummint entity which will purchase toxic-waste paper from other Banks--allowing the other banks (like Goldman, Sachs and Morgan Stanley) to clean out their warehouses of dicey paper.
If/when that happens, then Goldman, Sachs will sell $16Bn of garbage to the Feds, and Morgan Stanley will sell $29Bn.
Net/net: US taxpayer-funded "Bad Bank" has $45Bn of nuclear waste, but recovers $20Bn of 'loan/investments' from the firms.
And there are no more salary caps in place....
Strictly rumor, folks.
Source: Rude Awakening, quoting David Trone of Fox-Pitt Keltrone Analysts.
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