U.S. Lawmakers Clash Over Nationalizing Banks to Stem Declines

[babylonsister]

U.S. Lawmakers Clash Over Nationalizing Banks to Stem Declines

By Alison Vekshin


Feb. 21 (Bloomberg) -- U.S. Senate and House Democrats who steer financial-industry legislation clashed over having the government take over some banks as a way to help lenders that have been hammered by the worst economic slump in 75 years.

Senate Banking Committee Chairman Christopher Dodd said yesterday some banks may have to be taken over for “a short time,” and his House counterpart, Financial Services Committee Chairman Barney Frank, along with Republican Senator Jon Kyl rejected having the government step in to run banks.

“I don’t welcome that at all, but I could see how it’s possible it may happen,” Dodd, a Connecticut Democrat, said on Bloomberg Television’s “Political Capital with Al Hunt,” broadcast this weekend. “I’m concerned that we may end up having to do that, at least for a short time.”

Citigroup Inc. and Bank of America Corp., which received $90 billion in U.S. aid in four months, tumbled as much as 36 percent yesterday on concern the U.S. may take over the banks. The Obama administration in response said a “privately held” banking system is the “correct way to go.”

more...

http://www.bloomberg.com/apps/news?pid=20601087&sid=aR6hS.HsqHc4&refer=home

[fascisthunter]

1. I Think they will end up Nationalizing the Banks

and all this leaking is just warming up the public to that end.

[PDJane]

2. I personally think that nationalizing banks isn't the main issue,

although it would help in the short term. In the long term, it's about nationalizing the fed. That's necessary.

[ThomWV]

3. You know what the problem is with Nationalized banks? You can't loot them.

And so if you start talking about nationalizing particularly well looted and lootable banks their share price drops like a fucking stone.

[Grey]

4. Privatize the US portion of USB

The have a look at these books? Some DU back round on them, and some very interesting reading.


http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=102x3749898

and

http://www.democraticunderground.com/discuss/duboard.php?az=show_mesg&forum=102&topic_id=3747988&mesg_id=3748137

sorry about the large links....

[biopowertoday]

5. and Obama (via Gibbs) says no.