Interesting timing (TARP Related)

So the UST takes an involuntary loss and non-optimally converts pref’s in Citi the day after TARP gets repaid. Are they shooting for 0 P&L? Obama was talking yesterday about how TARP has been profitable to date, but he did acknowledge that there would most likely be losses. Do you think the Citi conversion is part of what he was getting at? Do you think UST will acknowledge the loss due to conversion? It’s funny how the media called TARP a bailout, while it was actually preferred equity that the banks had to pay a pref on; on the otherhand, I bet they won’t call the conversion a bailout even though it is simply putting money in the shareholder’s pocket.