The Curious Investor

How Are Banks Spending Bailout Money? Anyone's Guess

I have to agree with some of the other comments here. Dollar for dollar accounting is not the best way to keep track of the effectiveness of the money borrowed under the TARP. The money wasn't just given out to be spent. It is used to establish liquidity for the banks to propagate the functioning of our capital markets. I think the fact that we see 3-month LIBOR falling from 4.6% to 1.4% over the last few months is a very good sign that the TARP money is being put to use in a constructive manner. The real key is whether or not the banks, now that they have a capital cushion, are building stronger, less risky operations.