Dodd: Temporary Bank Nationalization Could Be in the Works
As the finance industry continues to flail and bank lending remains flat, Bloomberg reports that Sen.Christopher Dodd (D-Conn.), chairman of the Senate Banking Committee, is floating the possibility that the government might have to take over the banks — at least for a time. Bloomberg reports:
“I don’t welcome that at all, but I could see how it’s possible it may happen,” Dodd said in an interview on Bloomberg Television’s “Political Capital with Al Hunt” to be broadcast later today. “I’m concerned that we may end up having to do that, at least for a short time.”
With the federal government already backing the finance industry to the tune of more than $7 trillion, this is almost more of a semantic development than a practical one. That is, if the banks can’t survive without federal help, aren’t we already effectively nationalized?