Maybe not nearly as much as was suggested in the past during the worst of the crisis. Something tells me Geithner's Treasury will do little to maximize the return on investment for taxpayers so that Wall Street can maximize their own profits because the run up to the crisis wasn't profitable enough for Wall Street. The government overpaid for trash so it won't be shocking to see them get under-rewarded on the other side. NY Times:
But now banks, eager to get Washington out of their hair, are pushing to undo those investments as quickly — and cheaply — as possible. If the Obama administration acquiesces, billions of taxpayer dollars could be left on the table.
At issue are so-called warrants that the government received from the banks last autumn, when the financial world was teetering. Like options, warrants give their owners the right to buy stock at a set price over a certain period of time, in this case, 10 years.
Now, with many banks itching to return their bailout money, the warrants are raising some thorny questions. What are these investments worth? Should the government drive a hard bargain, or let the banks off easy? Should it maximize profit for taxpayers, or minimize pain for banks?
