Comments on: More Than One Way to Nationalize Preprivatize Bank

By: Che Stadium

Che Stadium — Sun, 01 Mar 2009 12:02:23 +0000

There is already a process in place for reorganizing failed banks (which is what we are talking about here) and getting the assets in the hands of people who can manage them. IIRC it is detailed in Section 8 of the FDIC Rules and Regs. Its time to get that done. Nationalization is an ugly term for that.

That being said, in the current climate I would not be surprised if reprivatization did not really happen and I share the angst over that prospect.

By: rktbrkr

rktbrkr — Sat, 28 Feb 2009 03:10:25 +0000

This WSJ article describes a buyer who gets a 25% cash discount on a bank purchase, WOW! The article says financing is nearly impossible to get now even for valid buyers!

http://online.wsj.com/article/SB123552303469165085.html

By: rktbrkr

rktbrkr — Sat, 28 Feb 2009 02:54:42 +0000

VennData,
So these low valuations are like what the US guaranteed 1/2 trillion to CITI, BAC and AIG so far?

It’s hard to imagine how the values could be so low except that now that underwater homeowners in non-recourse states are throwing the keys and the banks are selling for 40% off, maybe it’s not too strange.

Also seeing banks taking big % off all cash sales on FL foreclosure sales. we’re heading back to a cash & carry economy!

By: philipat

philipat — Sat, 28 Feb 2009 02:02:56 +0000

As a non-American I am surprised and somewhat amused by the reaction to the word nationisation (We even spellit differently in Europe!) There seems to be something deep in the American psyche which gets triggered by the use of this word, even though in practise it has already been widely employed, in most cases with the support of the same folks who react so strongly against the use of the word. Is this some sort of vestige from the cold war or did Ronnie Reagan have a chip inserted in all GOP members?

Still, as they say, actions speak loude than words. Just like the Republican Governors taking a stand against the bailout by acceprting the money. Strange country sometimes.

By: DeDude

DeDude — Fri, 27 Feb 2009 23:26:17 +0000

I meant BUY time. Sorry a Freudean slip. Sitting there thinking about them buying time before these banks go bye-bye

By: DeDude

DeDude — Fri, 27 Feb 2009 23:11:31 +0000

Perhaps they are trying to bye time so they can figure out what is in the banks and what is not there. I would hate to see government take over a bunch of additional obligations that they would not have to take if they instead used prepackaged bancrupcy. Also (as dsawy mentined) they have to figure out exactly what gets triggered in CDS if they nationalize – and what that will do to who. No matter what they do, they have to be sure to understand the full consequences, both in the short and long term. No more decisions based on ideological fiction.

By: franklin411

franklin411 — Fri, 27 Feb 2009 22:05:30 +0000

The only -ism the President believes in is Pragmatism. And that’s how it ought to be.

By: CyHastings

CyHastings — Fri, 27 Feb 2009 21:15:11 +0000

http://despair.com/government.html

By: JustinTheSkeptic

JustinTheSkeptic — Fri, 27 Feb 2009 21:02:11 +0000

I think I got it ass backwards…man, I got to leave that pinot alone!

By: JustinTheSkeptic

JustinTheSkeptic — Fri, 27 Feb 2009 21:00:06 +0000

I heard a woman say: mark to market is like going to bed with a porn star and mark to model is like going to bed with a banker…