Updated March 26 at 12:27am

Should the federal government nationalize banks that receive any more TARP funds?


With the Obama administration about to disburse the second half of the Troubled Asset Relief Program (TARP) funds, there is little consensus on just how the government should proceed.

While it is accepted that the Treasury Department should conduct "stress tests" on U.S. banks to see if their assets and liabilities are out of balance due to the real estate meltdown and the slowing of the economy, it is not clear under what conditions additional relief should be granted.

A growing chorus of economists is suggesting that banks that show a weak balance sheet should be, in effect, nationalized, because the losses that they will incur are too great for either them or the capital markets to absorb.

Do you believe that nationalization is the most prudent way forward?


No comments on this story | Please log in to comment by clicking here
Please log in or register to add your comment
Latest News