Dodd Says Short-Term Bank Nationalization Might Be Necessary

A

ASusilovic

Senate Banking Committee Chairman Christopher Dodd said it may be necessary to nationalize some banks for a short time as Citigroup Inc. and Bank of America Corp. tumbled today on concern the U.S. may take over both banks.

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

New York-based Citigroup and Charlotte, North Carolina-based Bank of America, which have received $90 billion in U.S. aid in the past four months, fell as much as 19 percent today.

http://www.bloomberg.com/apps/news?pid=20601087&sid=aEvPzrV6pF88&refer=home

So, can we finally get rid of Citibank in DJIA ? Ridiculous, that it´s still quoted.
 
Taking C and BAC out of the DJIA will give the market a short term artificial boost since the DJIA is the most widely reported market indicator. I doubt that they will be replaced by other bank stocks. Of course, any changes will occur over a weekend. In my opinion, nationalization is a real possibility. The talking heads are preparing the public for the take-over.
 
Quote from Angrycat:

The banks aren't already nationalized? News to me.

Face it guys, the banks were effectively nationalized long ago.
More...

catscat with his usual cynicism
 
Quote from chartman:

Taking C and BAC out of the DJIA will give the market a short term artificial boost since the DJIA is the most widely reported market indicator. I doubt that they will be replaced by other bank stocks. Of course, any changes will occur over a weekend. In my opinion, nationalization is a real possibility. The talking heads are preparing the public for the take-over.
More...

Seriously, they should add a goldstock or 2..

How is that for artificial propping up hu...
 
Quote from ASusilovic:

Senate Banking Committee Chairman Christopher Dodd said it may be necessary to nationalize some banks for a short time as Citigroup Inc. and Bank of America Corp. tumbled today on concern the U.S. may take over both banks.

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

This is what Nouriel Roubini has been advocating for quite some time. Looks like the pols are finally getting around to it.
 
"This administration continues to strongly believe that a privately held banking system is the correct way to go, ensuring that they are regulated sufficiently by this government," White House press secretary Robert Gibbs said when asked about nationalizing the banks.

It's official. Nationalization will probably happen within the next month. Beware C and BAC stockholders. You are forewarned!
 
You must log in or register to reply here.
Back
Top