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should the big banks be nationalized? even though there is a lot of discussion about whether this could be an option, i can't believe that most americans would be in favor of this so i am posting a poll to see where people actually stand on this issue.
As I stated before, the FDIC has routine taken over failed banks before. It recapitalizes them, then sells them back into private hands. The only thing different now is that the failed banks (Citi and BofA) are huge behemoths. This is not really about "nationalization" but "receivership".
As I stated before, the FDIC has routine taken over failed banks before. It recapitalizes them, then sells them back into private hands. The only thing different now is that the failed banks (Citi and BofA) are huge behemoths. This is not really about "nationalization" but "receivership".
From what I have heard is the stock goes to zero in nationalization.
From what I have heard is the stock goes to zero in nationalization.
As it should. If the Feds have to take it over that means the bank has failed. The stockholders get wiped out. Just like when any other company goes under.
BOA before this economic crisis was the most profitable financial institution in the world while a good example of nationalized companies is Amtrack that loses $1 Billion a year.
I don't think nationalizing the banks would be very good for us.
BOA before this economic crisis was the most profitable financial institution in the world while a good example of nationalized companies is Amtrack that loses $1 Billion a year.
I don't think nationalizing the banks would be very good for us.
If BOA was still profitable, it wouldn't be in danger "nationalization". We're only "nationalizing" banks which have already failed.
The government isn't nationalization BoA so that it is closed the following month, they are trying to make BoA operable for a "time".... when banks failed, they fail after being taken over by the FDIC and remain failed... this is NOT what the government wants to do with BoA or Citibank... how long before the "time" expires? (i.e. waste of taxpayer money paying overpaid salaries to BoA workers)...
The government isn't nationalization BoA so that it is closed the following month, they are trying to make BoA operable for a "time".... when banks failed, they fail after being taken over by the FDIC and remain failed... this is NOT what the government wants to do with BoA or Citibank... how long before the "time" expires? (i.e. waste of taxpayer money paying overpaid salaries to BoA workers)...
When the FDIC takes over a bank (receivership) they run the bank as a "bridge bank" for a period up to three years. During that time they can either sell the bank to private buyers or liquidate the assets. It'd be no different with BoA or Citi.
When the FDIC takes over a bank (receivership) they run the bank as a "bridge bank" for a period up to three years. During that time they can either sell the bank to private buyers or liquidate the assets. It'd be no different with BoA or Citi.
Somehow I do NOT see the Feds trying to make BoA or Citi into a "bridge bank" but rather prop up the bank with the backing of the government (nationalization) with no intent for the bank to be sold or liquidated... i.e. the government pays the bills and payroll and assumes all liabilities (I mean the taxpayers do all that since its THEIR money).... I doubt Dodd has the intention of liquidating or selling BoA when he spoke of nationalization... Nationalization is like Amtrak... so far I don't see Amtrak being sold or liquidated but the CEOs sure do make a lot of money... as well as their lobbyist...
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