February 25, 2009
Bernanke's Reassurance Scare
To reassure the market that the federal government would not nationalization Bank of American and Citigroup the Chairman of the Federal Reserve said "We do not need majority ownership to work with the banks... We have very strong supervisory oversight. We can work with them now to get whatever's necessary." In other words, "we run the banks without majority control of voting stock." This to me is worse than the reverse, "we need majority control of voting stock to run the banks." Couple this with the front page WSJ story that miscellaneous government officials from four or five departments are running around Citigroup issuing orders and making demands, some contradictory. What a mess; what a scare.
February 25, 2009 | Permalink
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