Wormhole confirms all $320M in funds have been restored

Re:Wormhole confirms all $320M in funds have been restored by panarky on Friday February 04, 2022 @11:53AM (#30209276)

The government paid far more for the preferred stock than the fair market value. 100% of the difference between the fair market value and the actual price paid was a gift to Wall Street banks that was never paid back.

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Re:Wormhole confirms all $320M in funds have been restored by NovemberWhiskey on Saturday February 05, 2022 @10:41AM (#30222133)

Nonsense. Most investments carry an element of risk. The Capital Purchase Program may have looked like a bad investment (negative NPV) at the time, but the record makes it clear it actually paid off.

It makes no sense to say "in 2008, the government expected to lose money on the CPP so that's what happened; gift to the banks that was never paid back" and then drop the mic while ignoring what actually happened.

For example: TARP's Congressional Oversight Panel estimated that the $25bn capital infusion into Wells Fargo represented a subsidy (difference between fair market value of the preferred stock and the amount paid) of about $1.75bn.

However, in 2009, Wells Fargo bought back the investment after having paid $1.44bn in dividends. Then, in 2010, the Treasury also sold $840mm in Wells Fargo warrants that were part of the CPP deal.

What we thought would happen: lose $1.75bn. What actually happened: made $2.28bn. If that isn't "paying back" from your perspective, could you please suggest what would be?

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