Dodd Says Short-Term Bank Nationalization Might Be Necessary

Discussion in 'Wall St. News' started by ASusilovic, Feb 20, 2009.

  1. 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.

    So, can we finally get rid of Citibank in DJIA ? Ridiculous, that it´s still quoted.
  2. 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.
  3. The banks aren't already nationalized? News to me.

    Face it guys, the banks were effectively nationalized long ago.
  4. catscat with his usual cynicism
  5. Seriously, they should add a goldstock or 2..

    How is that for artificial propping up hu...
  6. the 2 scariest terms in congress


    and 'short term'
  7. Dead banks walking.

    Dumb pols talking.
  8. This is what Nouriel Roubini has been advocating for quite some time. Looks like the pols are finally getting around to it.
  9. Dodd just wants to destroy the American financial system. Everything he has done so far, is anti-recovery.
  10. chartman


    "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!
    #10     Feb 20, 2009