Tag:
Nationalization
Latest Headlines
Latest Headlines
Big Fannie Mae, Freddie Mac debate: Privatize or nationalize
The debate over how to do handle the two biggest government sponsored enterprises (GSEs)--Fannie Mae and Freddie Mac--has heated up, stoked in part by the mortgage summit of August 17. The debate has been interesting in part because of the extreme solutions that have been offered.
At one e
What will Edward Liddy say on Wednesday?
AIG CEO Edward Liddy is being hauled out in front of the House capital markets subcommittee. No doubt they will grill him about the $165 million in bonuses AIG will payout, despite being 80 percent owned by the government and being on the receiving end of the $180 billion in bailout commitments. A
Roubini vs. Gross: To nationalize or not?
The nationalization discussion is not going away. But then again, no one really though it would. A debate has broken out between super-bear Nouriel Roubini, who in many ways predicted the mess we're in, and PIMCO founder Bill Gross. Roubini states his case in the Washington Post: " The
Foreign stockholders to prevent nationalization?
Does this strike you as a conspiracy theory? One commentator suggests that the United States will not nationalize Citi and other big banks because it does not want to wipe out the foreign holders of common stock, who might decide not to buy U.S. debt. Article
(Nationalization)
Citi shareholders may not necessarily be wiped out
Is it really a case of the government vs. shareholders? Well, in certain scenarios, it is. If the government were to seize full control of the bank, of course shareholders would get wiped out. But we're dealing with likely possibilities that fall short of a full takeover.
Fortune suggests
Nationalization as a semantic issue
Top government officials have trying hard to stick to their talking points on nationalization: We do not favor nationalization, nor are we planning for it. Fed chair Ben Bernanke told congressmen that nationalization "is when the government seizes the bank and zeros out its shareholders...we don't
Government aims to quell nationalization fears
There's a lot riding on the upcoming stress tests, and if the move by Citi to approach the government about taking a large stake in the bank is any indication, we can expect some banks to fare poorly. Which will certainly prod the government into more direct intervention.
For now, Obama Admini
Lessons from Continental Illinois?
The 1984 takeover of Continental Illinois seemed to be a success on the surface. But then head of the FDIC William Isaac has caused a stir with his column in the Wall Street Journal arguing that nationalization wouldn't work today. He has some good points, notably that the scale we're talk
Citi seeks a bigger government stake
It makes sense for Citigroup to seek permission to convert a portion of Uncle Sam's preferred shares into common shares. It would allow the bank to retire debt, and anticipate the need for a larger cushion of common stock--all the better to pass the upcoming stress tests, reports the New York Ti
Creeping toward nationalization?
What to make of all this talk of nationalization? It once seemed to be a far-fetched solution, but then Fannie and Freddie were forced into conservatorship. Now, the idea is being talked about as a real possibility for the likes of Citi and Bank of America. In fact, according to CNBC , some
