Dodd: Nationalizing Banks May Be Needed
EmailABC News’ Teddy Davis reports: Senate Banking Committee Chairman Chris Dodd, D-Conn., told Bloomberg News on Friday that banks may have to be nationalized for "a short time." "I don’t welcome that at all, but I could see how it’s possible it may happen," said Dodd. "I think that’s unfortunate, but it may come to that. I think the administration is resisting it; they prefer not to go that way for all of the reasons that we’re familiar with in terms of the symbolic notion of nationalization of major lending institutions." "But I listened to what Alan Greenspan had to say and what others have said and I’m concerned that we may end up having to do that, at least for a short time," said Dodd. Bank of America and Citigroup, which have received $90 billion in government aid over the past four months, fell by as much as 36 percent on Friday as investors worried that they might be nationalized. Dodd made his comments to Bloomberg Television’s "Political Capital with Al Hunt". The interview will be broadcast on Friday evening at 6:30 pm ET. At his Friday briefing with reporters, White House press secretary Robert Gibbs was asked about fears that Bank of America and Citigroup might be nationalized. Gibbs sought to beat back those concerns, saying the Obama administration stands by the private banking system. "This administration continues to strongly believe that a privately held banking system is — is the correct way to go, ensuring that they are regulated sufficiently by this government," said Gibbs. "That’s — that’s been our belief for quite some time, and we continue to have that." "The president believes that the bank — a privately held banking system regulated by the government is — is what this country should have," he added. Although the Obama administration continues to stand by the private banking system, some prominent economists, including Nobel prize-winner Paul Krugman and New York University’s Nouriel Roubini, have told ABC News that they believe after Treasury Department auditors begin their "stress tests" of banks, auditors will be forced to conclude that temporary nationalization of up to half a dozen major banks is inevitable. ABC News’ John Hendren and Sunlen Miller contributed to this report.
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I hope Peter Schiff beats this Dodd character in Conn. That is if Schiff decides to run.
Posted by: Huh | February 20, 2009, 6:21 pm 6:21 pm
Stop fiddle-farting around..just do it!
Then: 1. Fire the management. 2. Limit credit card interest rates to 8%. 3. Rewrite home mortgages at 4% 4. Break them up in to multiple regional bank only institutions. 5. Striclty regulate derivitave, short-selling, and market speculation. Finally, secure limited legislation allowing “agressive interrogation” techniques for bank officials, investor crooks, and the financial rating folks who got us into this mess. (O.K.-the last one is not serious, but jail time should be)
Posted by: B. Bear | February 20, 2009, 6:39 pm 6:39 pm
I’ve been saying it for months. The government will nationalize major banks. Why? 1)So the government can dictate to the banks when/if they will loan money, to whom, how much and at what interest rate. 2) When the owner of the national treasury also owns the banks the government will have the capability of propping them up with more (taxpayer) money without the consent of any legislative body, so theoretically the banks can’t fail. The treasury can just issue more money, thereby devaluationg the dollar, but keeping the dollars flowing. 3) We are willing to go along with most anything right now so althought Mr.Dodd says it will be temporary this administration will sieze this opportunity to begin nationalization of our financial institutions in general. The banks will never be private again.
Posted by: mmonroeliveson | February 20, 2009, 6:42 pm 6:42 pm
We all know that once the goverment takes something it is never given back or reversed. We are in big trouble and it looks like it is going to get worse as long as the demos hold power and that is what it is about, Power, not leading our nation but taking it over as their power base.
Posted by: Bonnie | February 20, 2009, 6:47 pm 6:47 pm
For those who can remember their history, this is exactly how Hitler came to power. The massive inflation in Germany caused by the repayment of the war debts allowed Hitler and his Gestapo to fool some people & intimidate the rest into allowing all kinds of “change” to the Deutchland. When people began resisting, he confiscated their guns. Watchout for Obama’s reactions when the criticism begins. He may bring his private army out to greet us!!!!!!!!!!!!!!!!!!!!!!!!!
Posted by: Cacti Jack | February 20, 2009, 6:59 pm 6:59 pm
we need to return to sanity.
No National banks .. Banks should operate within their own state, no banks owning other banks or parts of banks.
Small is good
Posted by: drudgeeeeeeee | February 20, 2009, 7:10 pm 7:10 pm
It’s a remarkable time in history. So many of us are uncertain of our future as the wolves are at our doors.
Posted by: mmonroeliveson | February 20, 2009, 7:16 pm 7:16 pm
Jonathan Jarvis has a great video/Vimeo called “Crises of Credit Visualized” if you wonder how we got into this mess- it’s all over the WEB.
Pure unregulated/irresponsible greed executed at the highest level of the banking industry is 99% to blame.
Posted by: Paige | February 20, 2009, 7:19 pm 7:19 pm
Cacti Jack; I predict if guns are outlawed there will be a lot of outlaws.
Posted by: mmonroeliveson | February 20, 2009, 7:21 pm 7:21 pm
Drugeeeeeeee; You’re on target pretty much as I see it. The local banks will be privately owned banks as long as credit cards don’t start to default. The next crisis could be the credit card industry. That’s where much of the money in our checking and savings accounts is invested.
Posted by: mmonroeliveson | February 20, 2009, 7:37 pm 7:37 pm
Since Gibbs said there would be no nationalization at today’s briefing, this must setup up a confrontation with Dodd and the White House. Does Congress win out?
http://www.political-buzz.com/
Posted by: matt | February 20, 2009, 7:44 pm 7:44 pm
Nationalizing Banks must be a bad idea at this moment…. Lynsey Grahm made a big deal out of calling for the Nationalization of banks a week or so ago… and he has never had a good idea yet unless it was him that talked McCain out of having Liberman as VP candidate. Oops, that wasn’t smart either… McCain picked Palin… Obama won.
Trust President Obama, we elected him to get us out of this mess if possible.
Posted by: MrSleepy | February 20, 2009, 9:05 pm 9:05 pm
Doddering Dodd, who scammed the system
for personal gain, now wants to “correct” the system. May we all
have access to a “Rezko” loan, like
Obama had,to live above our means…
or Dodd did to secure a “sweetheart” personal loan. If the gov’t takes
over the banks, Dodd may get a deal
that’ll REALLY blow your mind. Obama?
He’ll rule the world.
Posted by: Trajan | February 20, 2009, 11:09 pm 11:09 pm
Surprise, surprise, surprise! We will soon be living under a socialist regime with communism just around the corner. Obama’s “redistribute the wealth” Freudian slip to Joe the Plumber will soon be a reality. This “short time” nationalization is just another step away from capitalism and is not intended to be temporary.
I told you so.
Posted by: Oonogil | February 21, 2009, 4:32 am 4:32 am
“banks may have to be nationalized for “a short time.”" ‘A short time’??? When has the government every done ANYTHING temporarily? Like income taxes – which were supposed to be temporary? The United States that we grew up in is gone. We are now just another mediocre socialist country. Don’t wish for anything better for yourselves, because the American dream is dead.
Posted by: ellsbells930 | February 21, 2009, 10:49 am 10:49 am
How do we stop America from being socialist? This idea is just horrible. So much for the land of the free and the brave.
Posted by: j | February 21, 2009, 10:59 pm 10:59 pm
j; I’m afraid it’s too late. We live in the time of instant gratification. The associations and mentors of our president are refashioning the government and our nation at the same time we are at war on two fronts and in the course of a recession/depression. The course of action we’ve chosen is to throw money. He has so much at his disposal he doesn’t know what to do with it, but he is still saying he’ll likely need more to fix our problems. People eager to get a piece of the action are demanding their money now. Must be frustrating for him. I’m sure he’s doing what he thinks is best. The only question is what will America look like after four years of his style of governance?
Posted by: mmonroeliveson | February 22, 2009, 12:08 am 12:08 am
j – It’s too late. They are gutting the Constitution & bankrupting us into submission. They will have completed their socialist revolution without firing a shot.
Posted by: ellsbells930 | February 22, 2009, 8:40 am 8:40 am
I have read a lot of pretty words here.
Any plans?
Posted by: AwareamI | February 22, 2009, 5:09 pm 5:09 pm
You want to know my plan. Join your state militia and start training. Then when the government thinks that they are going to turn us socialist we fight.
Posted by: jewels | February 22, 2009, 9:20 pm 9:20 pm
jewels – it’s too late.. they’ve already done it… without firing a shot.
Posted by: ellsbells930 | February 23, 2009, 6:54 am 6:54 am
I am comforted to know that the majority of bloggers on this site realize in fact we are turning into the USSA Unites Socialist States of America. We have been dumbed down, terrorized, and mind controlled by media for so long, that we are headed toward a socialist marxist third world country without an armed conflict in this country. In fact, nationalizing the banks was a part of Hitler gaining control of Germany and becoming the dictator. It happened in Italy under Mussolini in the same way. Temporary? No, it is permanent. This time we will face a World War. The powers that be think the USSA can buy a New World Order and pit China against Russia to create a WWIII and keep it clean on foreign soil. Unfortunately, it is not going to work. China and Russia will unite against the USSA even though we have become like them. It is three rats going to kill each other for the last piece of cheese. The current path of the power mad socialist USSA administration is already antagonizing N. Korea and Pakistan who have nuclear weapons. This path will take care of global warming by humans, we will all be blown to cinders by nuclear blasts across the globe. Population will be down.
Posted by: Clancy49 | February 23, 2009, 7:28 am 7:28 am
If Obama and Congress are looking into this and companies are to become at least partially nationalized, then they should negotiate and write into new legislation before final agreement is reached; that is before potential partial government takeover,that those companies getting the people’s money in the form of bailouts to date, must pay back the government with interest any amount of money they have taken so far once they start making money again or once again recover to full privatization. This would seem like the only way to recoup bailout money so far. What’s to stop these politicians from creating this kind of legislation if they are really representing the people, they would look to get this kind of thing done.
Posted by: Harry | February 23, 2009, 7:34 am 7:34 am
What’s with the “maybe”? This is what President Obama has had planned all along. The time has come for one world economy. This will finally put us on the road to making it happen.
Posted by: mojo | February 23, 2009, 8:07 am 8:07 am
To whom can citizens turn when their tax dollars are used to subsiduze a banking and finance system whose practices are in many instances illegal, oppresive and completely out of control? I am a 75 yr. old senior citizen who is completely outraged by recent events. Please forward contacts that I can connect to, and participate with, to have my voice heard.
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