Roubini tells Geithner to nationalise US banks

[barb162]

Roubini tells Geithner to nationalise US banks
Tim Geithner must nationalise some of America's biggest banks and take the total toll of the US bail-out to around $2 trillion, according to one of the world's most prominent economists.

By James Quinn Wall Street Correspondent
Last Updated: 11:04PM GMT 15 Feb 2009

Nouriel Roubini – the man feted with having foreseen the financial crisis before almost any of his peers – has warned that the US Treasury Secretary must go significantly further than his detail-light bail-out plan delivered last week, and argues that the Obama administration should move swiftly to take public ownership of those major US banks which are failing.

Professor Roubini, who worked with Mr Geithner in the Clinton administration, told The Daily Telegraph: "Many US banks are insolvent, even the major ones." While nationalisation is "a politically- charged decision" which needs to handled carefully, he said it needs to take place "sooner rather than later" for the sake of the wider economy.

Professor Roubini calculated that, on top of the existing $700bn (£491bn) of American taxpayers' money allocated to solving the banking crisis, Mr Geithner may need to ask the US Congress for between $1,000bn and $1,250bn in extra funds. "Sooner rather than later, they'll need more money," he added.


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http://www.telegraph.co.uk/finance/financetopics/financialcrisis/4634398/Roubini-tells-Geithner-to-nationalise-US-banks.html

[Festivito]

1. Loot's gone. So the taxpayer gets to replenish a supply of money.

And heaven forbid a decrease in banker salaries, or how could be retain such talent... </end distraught chuckling sarcasm> and they're so smart, they're not even the ones who left the country -- yet.

[truedelphi]

2. Well, a crisis like this one guarantees the hue and cry for keeping

The needed talent! <Is sarcasm button necessary?>

[hope1954]

3. Checks and Balances

At least there would be some checks and balances at the banks then

[Terry in Austin]

4. Too many checks written on not enough balance!

:evilgrin: