TARP money, payday loans?
April 17, 2009 | alternatives, industry | Comments (0)From a Bloomberg story on some banks returning the TARP money so soon:
“If you look at the cost of those warrants and turn it into an annual percentage rate, it’s enormous,” said Camden Fine, president of the Independent Community Bankers of America. “It almost makes the Treasury look like a payday lender.”
Get that? The banks that received TARP money are, in effect, paying a high interest rate because of the short length of the loan.
