Tuesday, February 24, 2009

Nationalisation unnecessary

There are no zombie banks, Bernanke says

Despite operating in a regulatory grey zone, the nation's largest banks are not "zombies," Federal Reserve Chairman Ben Bernanke said Tuesday. The term "zombie" has become popular to describe a bank that exists but is only alive because of government support. The term was first used to describe Japanese banks during the "lost decade' in the 1990s. Just how damaged the banks are remains a mystery, even though the government has pumped billions of dollars into them in return for partial ownership stakes. The government is going to begin the process Wednesday to uncover exactly how big the "hole" is at the banks and has agreed to provide additional capital to fill the gap. Just how much capital is needed is also a mystery.

Posted by gardeniadotnet @ 10:09 PM (608 views)
Please complete the required fields.

Add a comment

  • Your email address is required so we can verify that the comment is genuine. It will not be posted anywhere on the site, will be stored confidentially by us and never given out to any third party.
  • Please note that any viewpoints published here as comments are user´s views and not the views of HousePriceCrash.co.uk.
  • Please adhere to the Guidelines

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes:

<a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong>