The AP reports that the preferred shares of banks purchased by the Treasury have lost $9 billion in value already. On the surface, it would seem that taxpayers over-paid.
However, I have explained earlier that taxpayers are among bank shareholders, and the Treasury funds went straight to those shareholders. In hindsight, those lucky shareholders received a good price for the stock they sold to the Treasury.
This is not a situation where taxpayers were ripped off, but rather a situation where some taxpayers got a bad deal and others got a good deal. Moreover, if you are among the former it is your own fault, because you could have sold bank shares when the Treasury was buying.
disclosure: long XLF