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Should Banks That Issued Government-Covered Debt be Allowed to Repay TARP Capital??

Posted By Chris Whalen On April 27, 2009 @ 1:02 pm In BP Cafe,Think Tank | Comments Disabled

This AM I was on CNBC discussing the banks [1] with Paul Miller of FBR.  Paul is a first rate analysts, IMHO.

I suggested that the big banks should not be allowed to repay TARP equity to long as the government is guaranteeing their debt. That is, if a bank wants to repay TARP capital, they must end the use of debt guarantees AND be able to refinance all guaranteed debt before the TARP capital is repaid.  Link below:

We will develop this further.  Look forward to your comments.

Best,

Christopher Whalen
Managing Director
Office: 914-827-9272
www.institutionalriskanalytics.com


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URLs in this post:

[1] This AM I was on CNBC discussing the banks: http://www.ritholtz.com/blog/2009/04/christopher-whalen-on-financial-fallout-from-stress-test/

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