Baraka,
regulations going forward are a different matter than what to do about currently failing banks.
These major banks are currently insolvent and illiquid. If left alone they will fail, and the options right now are to capitalize them by giving them money or take over them and then capitalize them.
Nationalization is a misleading term here because the idea is not that the US would make these banks state banks going forward. The US government wouldnt run them continually, or anything like that. It would be a short term acquisition with eyes to reselling it as a solvent entity.
|