We’re pretty sure the PPIP is totally dead. The fact that all of the banks passed the stress tests takes the onus off them to sell any assets. And if you’re going to be a buyer, getting into bed with the government seems like suicide.
See, Obama and Geithner have sworn up and down that participating buyers won’t face payment restrictions or be asked to “sacrifice” their profits at the end of the program for the greater good. But unfortunately that’s totally uncredible, because all it takes is for one Congressman to raise a muck, ex-post facto and they’re totally screwed.
Meanwhile, TARP overseer Elizabeth Warren seems to be going out of her way to undermine Geithner and Obama on this plan. Speaking to CNBC yesterday, Warren warned investors that they can’t expect “business as usual” if they participate. Gee, wonder what that means. That’s right: Comp limits. (via Eric Falkenstein)