Just out from the FT …
The US government may have to nationalise some banks on a temporary basis to fix the financial system and restore the flow of credit, Alan Greenspan, the former Federal Reserve chairman has told the Financial Times.
In an interview with the FT Mr Greenspan, who for decades was regarded as the high priest of laisser-faire capitalism, said nationalisation could be the least bad option left for policymakers.
“It may be necessary to temporarily nationalise some banks in order to facilitate a swift and orderly restructuring,” he said. “I understand that once in a hundred years this is what you do.”
Late Update: As Jon Taplin asks, is this the cover Summers and Geithner need.
The big development over the weekend was when Sen. Graham (R-SC) said he thought that nationalization of some of the major banks may be unavoidable. He’s now being forced to defend his comments back home. Charlotte-based B of A doesn’t seem that pleased.
From Jim Manley, Sen. Reid’s spokesman: “Senator Reid supports Senator Burris’ decision to cooperate with all appropriate officials who may review this matter, including state agencies and the Senate Ethics Committee.”
Lobbying from alleged Mini-Madoff Faux-Sir Allen Stanford helped kill a bill that would have cracked down on financial fraud.
Seems like he gave a nice amount of currency to Dems too — though so far Sen. Cornyn looks like the only one who got to take the “financial services industry fact-finding mission” to Antigua courtesy of Sir Allen.