The FED and Treasury are aware that Bank of America and Citibank are insolvent and need to be NATIONALIZED. They are afraid to do so at this time because they know full well that it would cause a "run" on deposits at Wells Fargo and JP Morgan. Geithner's "poor" performance week before last was more a result of this "fear" than him being in, over his head. They are simply stalling for more time, before they figure a way for the toxic assets at each bank to be analyzed and valued. Remember, it's not like they are gonna use some sort of "blanket" and uniform valuation here . . . They have to apply a distinct and specific "valuation" to each and every financial institution.
It sounds like the republicans might be jumping on this bandwagon as well. http://www.reuters.com/article/newsOne/idUSTRE51H57220090218 I also read that John McCain mentioned nationalization as a possibility as well... -Guru
If they do, they damn well better do it when the market is open so we can trade it. It's b.s. that all the huge announcements happen when our markets are closed while the European/Asian traders get rich off it.
We could need XLF at $6 and insignificant market caps for large US banks for geithner to throw the towel about getting private capital to come in and nationalize
If C and BAC were nationalized the market would rally. Geithner did a good job with the material he had to work with.