Nationalized Banks: Why They Might Work (Once "Schumer'd" IndyMAC shining example of what can work)

Time on Yahoo ^ | 3/6/09 | Stephen Gandel - Time

[NormsRevenge]

IndyMac will soon earn the first half of its name back. The government, which seized the failed bank last summer, is expected to close a deal in the next week that would return the California mortgage lender to private ownership. For IndyMac, the deal means independence in less than eight months. For the government, the IndyMac sale provides a shining example that takeovers can work at a time when the Obama administration may soon begin pushing for more nationalizations. (See 25 people to blame for the financial crisis.)

"The fact that the government ownership of IndyMac is coming to an end in just eight months is successful," says Kevin Stein, a former associate director of resolutions at the Federal Deposit Insurance Corporation and an investment banker at FBR Capital Markets. "Nationalization is a tool that has been used in the past and can be effective in the future in certain situations."

[<1/1,000,000th%]

Where’s Andrew Jackson when we need him?

[GeronL]

it might work??

what is their definition of ‘work’?

might??

geez. giving kindergatners might work too, but lets not

[edcoil]

With the government now owning or managing so much of our banks and insurance industries, and the disaster it seems to be having, now bama was medicine.

Great

[KC_Conspirator]

So its failed every its been tried, yet the brains at Time think “it might work”?

[massgopguy]

Imagine going to the bank to make a withdrawel and being told you’ll have to wait because the cash in your Passbook Savings account is in the general fund and has been replaced with IOUs like Social Security?

[Dahoser]

For the government, the IndyMac sale provides a shining example that takeovers can work at a time when the Obama administration may soon begin pushing for more nationalizations.

The Reagan years provide an even shinier example that tax cuts and deregulation fix a deep recession, but you don't see the Obama adminstration pushing for more of them nor do you see Time writing articles in support of them.

[Crim]

Sure it’s going to work...Indymac is cool again...soros owns it now...

How convenient.

[CPT Clay]

I want to know why an ex-employee has not gotten ahold of Shumer yet!?!

[ak267]

Nationalized banks? Just how many more hurdles will I have to jump to get a loan now???

Imagine if the gov’t dictates that my next car loan be either electric (barf), a hybrid (double barf), or that my house be “green” (jacking up the costs bigtime....triple barf).