[Blolover11]

Feb 18, 2009
Nationalise US banks


Mr Greeenspan said it will be necessary to temporarily nationalise some banks for a swift and orderly restructuring. -- PHOTO: ASSOCIATED PRESS





NEW YORK - THE US government may have to temporarily nationalise the country's banks until the sector is reformed, the former chairman of the US Federal Reserve, Alan Greenspan, has said.
In an interview with the Financial Times published on the paper's website on Tuesday, Mr Greeenspan said 'it may be necessary to temporarily nationalise some banks in order to facilitate a swift and orderly restructuring'.
Long one of the world's most powerful proponents of hands-off financial regulation, Mr Greenspan indicated nationalisation may now be necessary.
'I understand that once in a hundred years this is what you do,' he said. Widely hailed while in office, Mr Greenspan has seen his legacy tarnished since he stepped down in 2006, as critics accuse him of failing to head off the current economic malaise.
'In some cases, the least bad solution is for the government to take temporary control,' he said.
Mr Greenspan's call came as President Barack Obama on Tuesday proclaimed he had begun the work of saving the American dream, as he signed into law a historic US$787-billion (S$1.2 trillion) bill designed to rescue the US economy.
But US stocks plunged on fears the mammoth bill, a new plan to tackle mortgage foreclosures expected on Wednesday and a fresh effort to save decrepit US automakers would not be enough to end the worst economic slump since the 1930s.
Mr Obama, on a visit to Colorado, put his name to what he termed the 'most sweeping' recovery package in US history, which cleared Congress less than a month into his presidency, but with negligible Republican support.
'We have begun the essential work of keeping the American dream alive in our time,' Mr Obama said.
The president, who has been warning darkly of economic 'disaster' without quick government action, adopted a more hopeful tone as he signed the bill, which may have deep implications for the success of his presidency. But US stocks plunged as investors worried whether government action would save the ailing economy, with the Dow Jones Industrial Average down 297.41 points (3.79 per cent) to 7,553.00 at the closing bell. -- AFP

[Theariwinna]

Interesting to see if this really goes through in America -- it is contrary to what Capitalism stands for.

[kilibry]

like that could be jialat ?

people say banks nationalised, temasick's loss cannot recover, true or not ?

[CO2490pL]

Yes. Once Citi and Merill are nationalised, all existing shareholders and bondholders of these 2 firms will be wiped out completely of their investments! The good news is that accountholders will still have their money in their accounts.

[Theariwinna]

Yes. Once Citi and Merill are nationalised, all existing shareholders and bondholders of these 2 firms will be wiped out completely of their investments! The good news is that accountholders will still have their money in their accounts.

I understand the alternative is to get a loan from the Fed Reserve like AIG did. That would protect both investors and account holders...

[Symnunidanimb]

Japan and Sweden's banking crises in the 90s have shown that unless the government takes control of sick banks with insurmountable debts, and totally reform the bad debt, and appointing new people, the banks under current management will not do much or even do nothing- because they will want to believe the good old days are not over yet.

I think its something to be considered, and even a close McCain ally, Sen. Lindsay Graham, no friend of bank nationalisation, thinks it may come down to that. Its the Democrats who are afraid that they will be accused of being socialists by the neo-cons and fiscal conservatives and that's why some of them are balking initially. After all, its Nancy Pelosi, a San Francisco democrat, who's balking. Its ironic, but its also true.

[texbrease]

Obama going to ass ream Temasek, GIC and especially LKY

[Blolover11]

like that could be jialat ?

people say banks nationalised, temasick's loss cannot recover, true or not ?

Say alound after me...LONNNNG-TERM INVESTMENT! *Ouch*

[Blacksheepaalredy]

Pretty rich coming from a man who allowed the bubble to grow bigger and bigger.

NEW YORK - THE US government may have to temporarily nationalise the country's banks until the sector is reformed, the former chairman of the US Federal Reserve, Alan Greenspan, has said.
In an interview with the Financial Times published on the paper's website on Tuesday, Mr Greeenspan said 'it may be necessary to temporarily nationalise some banks in order to facilitate a swift and orderly restructuring'.
Long one of the world's most powerful proponents of hands-off financial regulation, Mr Greenspan indicated nationalisation may now be necessary.
'I understand that once in a hundred years this is what you do,' he said. Widely hailed while in office, Mr Greenspan has seen his legacy tarnished since he stepped down in 2006, as critics accuse him of failing to head off the current economic malaise.
'In some cases, the least bad solution is for the government to take temporary control,' he said.
Mr Greenspan's call came as President Barack Obama on Tuesday proclaimed he had begun the work of saving the American dream, as he signed into law a historic US$787-billion (S$1.2 trillion) bill designed to rescue the US economy.
But US stocks plunged on fears the mammoth bill, a new plan to tackle mortgage foreclosures expected on Wednesday and a fresh effort to save decrepit US automakers would not be enough to end the worst economic slump since the 1930s.
Mr Obama, on a visit to Colorado, put his name to what he termed the 'most sweeping' recovery package in US history, which cleared Congress less than a month into his presidency, but with negligible Republican support.
'We have begun the essential work of keeping the American dream alive in our time,' Mr Obama said.
The president, who has been warning darkly of economic 'disaster' without quick government action, adopted a more hopeful tone as he signed the bill, which may have deep implications for the success of his presidency. But US stocks plunged as investors worried whether government action would save the ailing economy, with the Dow Jones Industrial Average down 297.41 points (3.79 per cent) to 7,553.00 at the closing bell. -- AFP

[hiedeemom]

Once a trouble bank is nationalized all shares will be liquidated. Even is you are a prefered shareholder. If a public company go bust, the prefered shareholder will still get the most of the asset left and the balance will be distributed to ordinary shareholder. So in this case, all those who invested regardless of their holding status will see their portion neutralized and may becomes nihil, zero, or Kosong. This is worst than paper lost where you can recover some if u decide to cut losses or waait for it to pick up

[CO2490pL]

Once a trouble bank is nationalized all shares will be liquidated. Even is you are a prefered shareholder. If a public company go bust, the prefered shareholder will still get the most of the asset left and the balance will be distributed to ordinary shareholder. So in this case, all those who invested regardless of their holding status will see their portion neutralized and may becomes nihil, zero, or Kosong. This is worst than paper lost where you can recover some if u decide to cut losses or waait for it to pick up

This is how Greenspan, Bernanke, Paulson, Geithner, Obama,, their higher ups, and their cronies will wipe out the investments of Temasek in US banks:

Temasek's investments in US banks will most likely be totally wiped out when they are nationalised. The US taxpayers will foot the bill for the USGov't to recapitalize (nationalise) the banks. Obama et al. will eventually re-privatize the banks by selling them for 10 cents on the dollar to their higher ups and their cronies.

Wealth is just being legally transferred from the existing shareholders like Temasek, Prince Al-Waleed bin Talal, & the US taxpayers to the legalized criminals on Wall Street and the Fed Reserve.