Fed eyes Nordic-style nationalisation of US banks, page 1

Fed eyes Nordic-style nationalisation of US banks, page

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Topic started on 31-3-2008 @ 03:41 PM by Parabol

Fed eyes Nordic-style nationalisation of US banks

www.telegraph.co.uk

The US Federal Reserve is examining the Nordic bank nationalisations of the 1990s as a possible interim solution to the US financial crisis.

Norway ensured that shareholders of insolvent lenders received nothing and the senior management was entirely purged. Two of the country's top four banks - Christiania Bank and Fokus - were seized by force majeure.

(visit the link for the full news article)

Related News Links:
biz.yahoo.com
www.bloomberg.com

reply posted on 31-3-2008 @ 03:41 PM by Parabol

Seems odd how the Fed makes grabs for power during economic crisis in order to aid the country. And I'm not buying that this would only be a temporary solution. Why is our government and treasury department so willing to give away their power and rights? It feels like the Fed is throwing bricks through our windows while promoting their glass repair service.

www.telegraph.co.uk
(visit the link for the full news article)

reply posted on 31-3-2008 @ 03:47 PM by oLDWoRLDDiSoRDeR

reply to post by Parabol

It feels like the Fed is throwing bricks through our windows while promoting their glass repair service.

Couldn't have said it better myself. If they were trying to give the states the power. And maybe setup an independent citizen panel for over site . I could go for it . But not "oops we got caught with our pants down . Lets make it a matter of national security and hide it forever" crap.

[I'm not saying my way would work. Just at least put a little sugar on the turd before you try and feed it to me]

[edit on 31-3-2008 by oLDWoRLDDiSoRDeR]

reply posted on 31-3-2008 @ 03:56 PM by AWingAndASigh

Maybe it's because the banks are all broke from all their borrowing from the Fed window.

What are they down now - $160 Billion? Plus $100 Billion more for April?

The Fed might as well take them over. They already own them via taxpayer dollars.

reply posted on 31-3-2008 @ 04:12 PM by infinite

A Norwegian perspective on banking crisis resolution

Kristin Gulbransen
Norges Bank Conference on Banking Crisis Resolution - Theory and Policy, Oslo 16 June 2005
Introduction
The Norwegian Banking Crisis affected almost 2/3 of the banking system and led to the nationalization of our three largest banks. At the time, it was the first systemic crisis in an industrialized country since the 1930s. This also explains why the crisis caught most policymakers off-guard.

How could this happen in a well organized, mature economy? How was the crisis resolved? And, what can we learn from the crisis resolution methods adopted in Norway? These are the questions I will address today.

Banking crisis

reply posted on 31-3-2008 @ 06:35 PM by Parabol

reply to post by infinite

Thanks for contributing some more information. I'll be sure to read through it in a sec, hopefully this will help us get a better grasp of what sort of plan the Fed is looking at.

AWingAndASigh

Yeah, I'll have to find the article, but I read somewhere yesterday that there are 7 ways banks can borrow money from the fed, and five of them were created in the last year. They are literally digging the holes deeper for these banks until they're forced to concede power. I'll be interested to see how certain economists react to this.

oLDWoRLDDiSoRDeR

Ha, yes, state power... what a concept. I think I remember reading about it in US history but I haven't seen a whole lot of it in life. And no way do they create an truly independent review board, much less comprised of civilians. Even if they did, those people will be swayed by whomever. Look at the primaries. I'd love to see it though, heck, at least they'd be a bit less obvious about it all.

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