Enterprising Investor Forum

Light at the end of the tunnel? Wednesday, June 10, 2009

So it looks like The Treasury has given the green light for 10 banks to repay their TARP capital and therefore will be receiving 68bn back in repayments -> let’s hope that this is the ultimate sign that these banks are getting back on track, as we do not want to even try and imagine what would happen if they need to borrow some of the money back…

So should we focus on the fact that The Treasury has netted a couple of billion and that things are OK or should we still be worried that these banks have broken free from government control before all measures and reforms have been taken to avoid future problems and a repeat of the crisis?

There is a real possibility that these 10 banks will go back to business as usual whilst the others will continue to struggle and find it harder to get back on their feet, now that it is ‘official’ that they are the weaker players…

It really feels like there will be more surprises before we actually see the light at the end of the tunnel!