Banks that got free money from the Fed and can longer get massive returns in the stock market?
They have to pay back any loans. They aren't free.
Banks have been doing LBO financing for decades at this point. They get paid for the risk, and mostly know what they are doing.
How did you calculate the level of risk for this loan?
$1B+ interest payments but no market for the debt. It is as of now a massive high-risk loan (though perhaps it wasn't in April).
Is an interest payment on a load only reflecting the risk of it and nothing else? What's the balance between the risk and other factors? What do rates usually look like on loans used for this purpose?
What is risky about the situation at hand from the lender's perspective? What is the scenario in which the lender isn't made whole?