Loan Modification

I hate the idea that this has the full faith and credit of the US. This is a repo 105 deal all over again. It is just optics, there is no substance. There is no reduction of risk to the taxpayer. This transaction just adds to the overall cost.

The FDIC has a $500b line with Treasury. This borrowing could have been accomplished much cheaper if that route were taken. The reason that did not happen is just more optics. If the FDIC had borrowed from Treasury the word ?bailout? would have been uttered. We wouldn?t want that to happen would we?