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Market fears today saying privately held banks is the correct way to -- But are we essentially nationalize.
All ready -- -- he is the CEO of the American Bankers Association.
-- -- they had when this first started.
And the talk of this idea that we are stepping nor nationalism a lot of people's civil that's why these banks axis of cheap because.
They're close to -- -- will be wiped out equity always been wiped out anyway in that movement.
Since that's what a lot of folks think we're headed that's what's gonna happen and what now.
Well I really don't think that the government has any intention of nationalized the banks I think people need to go back -- read.
What the White House -- so today what chairman Bernanke said earlier this week.
What the secretary of the treasury has.
And the main reason is there would be a terrible policy.
-- policy and Alex had a chance to think it through.
Unlike last year when it was exact.
It is to gradually bring private capital back in the banks and back into buying troubled assets.
And what could be more counterproductive to that -- starting to nationalize banks and wipe out shareholder.
Repeat what you -- we had a solid you have hundreds of billions of taxpayer dollars already going to -- -- that that is more now than their market value.
And and you have an environment where -- you know.
Like Lindsey Graham and Alan Greenspan are saying maybe it's sort lied -- -- those -- -- might not yet cards paraphrasing there.
Then you gotta wonder whether there is something that.
Well there's a lot of speculation and fear in the markets but I think people need to step back.
And say does that really make any sense.
And one of the reasons that doesn't make any sense is that -- started down that line how would you stop -- mean basically we have a market -- driven by fear.
And short so what you could say this added value ultimately to say the same -- about all the money that hundreds of billions of mine would -- in the banks -- -- -- that -- Well I think they have a program and one of the things I would point out -- there's great confusion this this administration is trying to straighten it out.
We had the capital purchase program which was designed for healthy institutions that wasn't designed for troubled institutions.
And we have a little less than 400 banks that have been involved in that.
And by and large they're all very healthy institutions it's a very different program.
Then when you get into AIG are Fannie Mae and Freddie Mac so there's a great deal of confusion.
But it really makes no sense if you think about where the government's trying to do.
What is trying to do to start nationalizing banks all you're doing -- a rewarding the fear and rewarding the speculation.
And setting up a domino effect I think that they're saying we're gonna draw the line here.
And we are going to.
Try to get private capital back into the so that you might be -- that I'm telling the markets being the early verdict read on this is that they have that -- -- no faith in the bags and certainly no faith that there out of there.
Their troubles and whether it's of reflection that they think elements have been nationalized.
-- that they just think -- had it's it's hardly.
A great alternative.
Well I think the markets are driven by fear and frankly at this point they're completely irrational and so far the fear has been reported.
So -- -- union and I think what they're saying is we don't want are rewarded anymore.
And I would say.
This a lot of people talking to each other saying that all these banks are insolvent and there's no factual basis for that I've talked to the regulators.
They don't tell me about individual banks I don't -- But in talking to the regulators they don't believe these institutions are insolvent.
And I don't think they have any intention of going down that path of nationalization.
All right it will see what happens thank you.
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