take a guess

Treasury's Standardized Terms

Felix, you are taking a piece out of the broader context. The real trick behind this is that banks can be guaranteed on new senior loans. Combined with the T1 capital injection, banks will be able to get 5 - 7x new loans at dirt cheap price and lend them out while maintaining a safe T1 ratio. This gave them some good incentive to make some easy money. At the end of day, not making profit is as dangerous as not having a good balance sheet.