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Originally Posted by RIJIMMY
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My understanding is that most banks have technically paid back TARP, but they did so with our own money. Also, they've offloaded a ton of toxic loans that have a high chance of failure onto the government - which I believe count as "payback".
Banks are leveraging new loan programs to receive close to interest-free loans from the Treasury and then using those loans to pay the Treasury back for TARP.
So yeah on the Balance Sheet, banks can say that TARP has been paid back, but that's just because they brought on debts to the government under a different name.
This is from June 2011 but it is the process still being used.
Banks tap fund to repay TARP - Boston.com
So, I'd be skeptical before giving "private institutions" too much credit. Fannie Mae isn't really doing much different than the private banks - both are insolvent without being handed taxpayer money.