The Bank Nationalization Hub-Bub

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Keynes's picture
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In a Time article about Nationalization they discuss the "success" of IndyMac as a model for future bank nationalization:

http://www.time.com/time/business/article/0,8599,1883418,00.html

Now I will concede that the fact that it's being re-privatized does qualify it as a "success," I'd say having to drop $11 billion on a medium sized bank failure doesn't set a great precedent for the cost of "success."  If Indymac costs $11 billion, what would Citibank cost?  Now, as usual, Time's numbers left me with more questions than answers, so it's not entirely clear that that $11 billion number is the net loss after the sale, but if so I'd say it presents a serious argument against Nationalization.  I.E.  Even with a smaller bank at which we could throw our best and brightest, it still cost us 11 billion dollars to fix it.