Even funnier

Look what the banks want to do now.

So let's play this out out for you...

BankA has $10m of crap.
Due to new rules they value said crap at $100m just because it's a friday.
BankB has $100m of crap too.

BankB goes to the federal reserve and borrows $8m at the fed discount rate of .25%
BankA goes to the federal reserve and borrows $8m at the fed discount rate of .25%
BankB buys BankA's crap for $100m - using $8m in 'matching' tarp funds and $84m in 'low interest govt financing'
BankA buys BankB's crap for $100m - using $8m in 'matching' tarp funds and $84m in 'low interest govt financing'

The banks just moved 92% of the debt off their books for nothing.

Now it gets fun

BankB creates a collateralized asset pool consisting of ONE paddle game, ONE lamp, and ONE ashtray - and sets the value of that pool at $100m.
BankA creates a collateralized asset pool consisting of ONE remote control, ONE magazine, and ONE chair - and sets the value of that pool at $100m.

Each bank now swap the asset pool for the original $100m of toxic crap - then sell the collateralized asset pools at auction, realizing the loss (sorry govt - you lose) - and keeping all the actual property itself. So long as the actual crap was worth more than the $8m they put up front in the auction (i said it was worth $10) the banks turn a profit.

Oh sure... the money has to come from somewhere... but that's not the banks problem (anymore).