Skip to comments.Three Reasons Bank Nationalization Will Keep Investors Awake at Night
Posted on 03/01/2009 12:49:18 PM PST by An Old Man
Its a tough time to be a bank shareholder. Youre not just worrying about whether the ongoing recession or a further lurch downwards in housing prices is going to decimate the value of your banks loan portfolio. Youre also worrying about whether some government stress test or worse still nationalization is going to destroy most or all of your investments remaining value.
And finally, if youre smart, youre worrying about whether some cockamamie government loan scheme is going to artificially force down the nice juicy interest margins your bank is earning on the new loans it makes.
Clearly, when it comes to bank nationalization, theres more to be worried about than most investors realize.
Reason No. 1: Nationalization Distorts the Marketplace
Reason No. 2: Nationalization Creates Artificial Support
Reason No. 3: Stressed Testing Could Overstress Weak Players
If the recession isnt already keeping investors awake at night, the government actions certainly will
Sleep well tonight for tomorrow the Government may own your Bank.
Reason 4: The ones who got us in this mess now run the banks.
Yep, and they back the trucks carrying the fiat money up to the back door, while telling everyone out front that everything is fine.
And the beauty, no one can figure it out until it’s too late.
Wasn’t the fed supposed to prevent this?
Reminds me of the semi’s backed up to the Central Bank in Bagdad. Hundreds of millions of dollars went to Syria in those days, maybe with the WMDs.
My small independent bank is having a private stock offering, not because of poor condition or perfomrance, but to permit growth and future expansion plans. Our asset quality and profits are fine.
Talk of nationalization is scaring some investors away. We are NOT taking TARP capital. For us, the leftist agenda is causing a problem because we need the capital to move forward and the Obama adminsitration/looney liberal Congress is spooking our investors a lot more than the economy is.
Hank in there, we need more people like you.
Will do. Thank you, sir.
Money soon may not be worth the paper it is printed on.
The banks will NOT be nationalized. Too many Clintonites (Ruben, etc.) will lose millions of dollars (stock holdings). No way.