What's TARP II?
Not trying to waste your time, but still haven't heard which IBs funded their derivatives losses with commercial bank deposits.
Not a penny, m'FRiend. Not one penny, except just barely possibly a pro forma dollar or two, here and there, for PR and/or propaganda purposes.
By way of example of the (unfortunately entirely typical) chicanery that occurs on an everyday basis in the rarefied circles of international lending (cough), please consider this. It is entirely true, easily (well, not so easily these days...) demonstrable, and a nearly perfect paradigm of the LACK of repayment of debt from one goobermint or goobermintal institution to another.
Are you aware that, in this wonderful game of international lending/subsidy, that the ONLY (as of 2007) debt (principal, not interest) that was EVER paid back to the US, aside from Finnish war debt from pre-1950, was exactly $190 million -- million with an 'm' -- from Peru in the mid-1980s? If there has been ANY subsequent repayment of principal by ANY nation/nations/int'l banks to the US, I am unfortunately unaware of it. And the same from the US to any of its creditors, most specifically the ChiComs. As ti Peru's evidently unique repayment of capital, I suspect that their finance minister, after said repayment, must have ended up roommate to Jimmy Hoffa in the Meadowlands.
Lend and extend, Toddy. It is and has been the only real national/international banking game for a couple of decades, more's the pity. It goes at least as far back as Walter Wriston's famous (and utterly incorrect) comment that "nations don't go broke", said by him as a justification excuse for continuing Citibank's disastrous sovereign loan programme of the 1970s.
Further, this applies generally to any domestic subsidisation of banks/companies/whomever in, afaik, every 'developed' nation, too. Most recently and infamously, of course, we have the stellar (cough...) example of GM, which will NEVER (write it down in big, black letters, and you PERSONALLY crime me if I'm wrong here...but I'm not) repay any of the taxpayer-funded bailout.
Where this chain-letter world of finance ends up is of course perfectly clear. The only thing that keeps this bizarre little game afloat is that the big players in the status quo WANT, and will expend essentially unlimited effort and capital, TO keep the game afloat. Therefore, the date of Armageddon either will remain effectively unknown or will not be observable generally when -- not if -- it occurs.
Rather like Heisenberg's Uncertainty Principle, come to think of it.
If you want a motto for the int'l game today, it is: you're only really broke when you cannot borrow the interest now due.
Sorry for the gloomy view, but there it is.