No, I don't think they should be nationalized. That seems extreme and cumbersome. I think the U.S. (and other nations) can learn much from other, more stable banking systems, like the one here in Canada, which is subject to an overarching constitutionalized regulation that makes sure all banks are following regulations, laws, and other aspects of banking/financial regulatory compliance.
Here's something coming from Obama's recent trip to Ottawa:
Quote:
Obama finds the Canadian banking system 'striking'
Posted: February 18, 2009, 10:19 AM by Vieira
Ottawa
The World Economic Forum has ranked Canada's banking system as the best in the world, and Bank of Canada governor Mark Carney has said other major industrialized and developing economies want to learn more about Canada's financial architecture.
Now, count U.S. President Barack Obama as a fan of the Canadian financial way, according to an interview he conducted Monday with CBC.
"One of the things that I think has been striking about Canada is that in the midst of this enormous economic crisis, I think Canada has shown itself to be a pretty good manager of the financial system in the economy in ways that we haven't always been here in the United States," Mr. Obama said during the broadcast interview in advance of his five-hour working visit with Prime Minister Stephen Harper in Ottawa Thursday. "And I think that's important for us to take note of, that it's possible for us to have a vibrant banking sector, for example, without taking some of the wild risks that have resulted in so much trouble on Wall Street."
Paul Vieira
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TheStar.com | Canada | PM praises Canada's financial sector on U.S. TV
Here's an excerpt regarding PM Harper's visit to New York:
Quote:
PM praises Canada's financial sector on U.S. TV
TheStar.com
February 23, 2009
bruce campion-smith
Ottawa bureau chief
OTTAWA — Prime Minister Stephen Harper hit the Big Apple today — the heart of America's economic meltdown — to boast about Canada's stable banking system, warn against trade protectionism and note the insatiable appetite for oil south of the border.
While Canadian media were shut out of his visit to New York City, Harper wasn't shy about talking to American journalists as hevisitedseveral news networks to build on the attention sparked by U.S. President Barack Obama's visit to Ottawa last Thursday.
"Because we're not a squeaky wheel, we often don't get the grease and we're forgotten. So it was great to have that kind of attention from our great friends in the United States," Harper said during a morning interview with Alexis Glick, of Fox Business News.
"And one of the reasons I decided to travel here today was to follow up on that rare attention we actually got in the U.S. media last week," he said.
The prime minister sang the praises of Canada's prudent banking and financial system, which he said can be attributed to "activist" regulation by Ottawa.
"We're helped by the fact we have six major banks, three major insurance companies so it's easier for the government to exercise moral suasion on the sector," Harper said.
He said that Canada, while hit by the economic downturn, hasn't suffered a meltdown of the financial sector or the mortgage foreclosures that have hit the U.S. economy so hard.
"We haven't had to bail out any of our financial institutions," Harper said. "There will be no government bailout of mortgages in Canada."
Harper said he remains "hugely worried" about the financial system in the United States as well as several other unnamed countries.
[...]
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TheStar.com | Canada | PM praises Canada's financial sector on U.S. TV
Nationalization isn't the only answer, and I think the alternatives are to be well-planned and far-reaching.