Banks are just going to take the 700 billion, give the taxpayers junk and once the banks engorge themselves with this money, they will just hold on to it and not loan anyone anything. Why not instead have the FED open up a special financial entity that will buy commercial paper from companies at nominal rates instead. Get rid of the middleman. Not like banks are going to put that money to use instead. This will fix the liquidity problem and segregrate the junk banks, let them fail and the strong banks will survive.