Nationalization of Banking System vs. RTC2
The banking crisis is far from over. Price discovery of toxic assets has still not occured but instead has received an unlimited backstop from U.S. taxpayers. While this has prevented systemic collapse thus far, the U.S. banking system is insolvent. Eventually, the US will have to either nationalize the banking system or put troubled banks into receivership. My guess is the US will nationalize the banking system in 2010 after the elections. Feel free to post news articles that relate to toxic assets such as MBS, CMBS and updates on this topic.
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By Dawn Kopecki July 29 (Bloomberg) -- House Financial Services Committee Chairman Barney Frank threatened to revive the mortgage “cram- down” bill that stalled in Congress this year, saying lenders aren’t being aggressive enough in modifying troubled home loans. Cram-downs let federal judges lengthen terms, cut in...
Posted 399 days ago
link http://www.bloomberg.com