Will United States be forced to nationalize banks
government latest bank rescue, this time a multi billion dollar lifeline handed Canada Goose Online to Bank of America, has led to more talk of what once would have been unthinkable European Canada Goose Parka style nationalization canada goose black friday sale of major American banks. is growing more willing to put significant uk canada goose pressure on the largest banks. government operated for much of last year.
nationalizing banks one at a time now. The real canada goose clearance question is, jacketstock will the biggest ones need to be Canada Goose sale nationalized?, buy canada goose jacket cheap said Roy Smith, professor at New York University Stern School of Business. banking system desperately needs capital. Estimates of the shortfall range from $700 billion to more than $2 trillion.
That money will not come from the private sector as canada goose uk outlet long as the pending losses are all but impossible to estimate. canada goose clearance sale government will have little option but to step up.
In earlier stages of the meltdown, the United States tried to penalize investors to canadian goose jacket the smallest extent possible when it intervened.
When Bear Stearns Cos canada goose canada goose outlet coats Inc failed, the government brokered a deal that Canada Goose Outlet ultimately resulted in Bear shareholders getting money, while debt holders lost nothing.
After that deal, regulators got tough, and canada goose store let Lehman Brothers Holdings Inc fail. Chaos ensued.
Two months later, when the market lost confidence in Citigroup, the government bought preferred shares and warrants, giving it exposure similar to owning shares without diluting shareholders.
The transition team of president elect Barack Obama, who takes office on Tuesday, has said it will seek Canada Goose Jackets more concessions from banks seeking capital than the Bush administration did.
Lawrence Summers, director designate of the National Economic Council, promised congressional leaders this week to limit dividend payments and executive compensation at banks that are bailed out.
And there are signs that Citigroup is facing significant government pressure. It has sold off a stake in the brokerage business that Chief Executive Vikram Pandit said he uk canada goose outlet just a few weeks ago.
And the Canada Goose Coats On Sale bank broke with the rest of the industry and supported bankruptcy legislation that detractors say will give consumers an incentive to file for bankruptcy. Treasury Troubled Asset Relief Program.
That $20 billion was on top of the $25 billion that Citigroup and other banks received in October.
And Bank of America, which canada goose uk shop received more help from the government in an anticipated announcement late on Thursday, is expected to face more government scrutiny as well.
There are reasons to question canada goose factory sale whether full nationalization of the biggest banks is likely any time soon.
Nationalizing just one of JPMorgan Chase Co, Bank of America Corp, or Citigroup, which together have about half the assets in the banking system, canada goose uk black friday would double the Federal cheap canada goose uk Reserve balance sheet instantly.
That could weigh on the dollar, which has already fallen some 17 percent canada goose against the Japanese yen since August.
And if the government were to nationalize one large lender, shareholders would likely lose confidence in other marginal banks.
you nationalize Citigroup, you have to nationalize 10 other banks. It won just stop canada goose coats on sale with one, said Marc Snyder, senior financial stock analyst at cheap Canada Goose Symphony Asset Management in San Francisco.
The banking industry itself is obviously opposed to nationalization.
it weren for the political power buy canada goose jacket of the industry, nationalizing is what you want to do. It almost a no brainer, said Dean Baker, co director of the Center for Economic and Policy Research.
But over time, the government will likely have little choice but to step in more Canada Goose online completely, said Sean Egan, founding principal at rating agency Egan Jones Ratings.