Banks will buy stocks with TARP funds?

Discussion in 'Economics' started by crgarcia, Mar 23, 2009.

  1. There are little investment opportunities during such a harsh recession.

    So, here we go again, they will speculate with somewhat cheap stocks, to overvalue them again?
     
  2. Tide31

    Tide31

    I'm sure they mean their own stock right. This is the best thing they could do with the funds. Every single US money center bank is trading well below book value, which I understand is a moving target these days, but still. This is highly accretive and improves one of the two crucial parameters that banks are valued upon today.