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Republican Says He Won’t Drop the Idea of Nationalizing the Banks
A Republican and a Democrat agreed Sunday that the government may have to take a larger ownership stake in the nation's banks. But the Republican lawmaker seemed to go even further than the Democrat in backing the idea of nationalization.
(CNSNews.com) – A Republican and a Democrat agreed on Sunday that the government may have to take a larger ownership stake in the nation’s banks. But the Republican lawmaker seemed to go even further than the Democrat in backing the idea of nationalization.
“Let’s talk” about nationalizing the banks, Rep. Maxine Waters (D-Calif.) said on ABC’s “This Week.” But she also said the nation is not ready to “move to the point of a formalized nationalized banking program yet.”
Rep. Sen. Lindsey Graham (R-S.C.), who appeared on “This Week” with Waters, said the nation’s banks are in so much trouble, “We’re going to have to do something that no one ever envisioned a year ago, no one likes.”
Graham said he would not drop the idea of nationalizing the banks:
“Yes, this idea of nationalizing banks is not comfortable, but I think we have gotten so many toxic assets spread throughout the banking and financial community throughout the world that we're going to have to do something that no one ever envisioned a year ago, no one likes -- but, to me, banking and housing are the root cause of this problem. And I'm very much afraid that any program to salvage the bank is going to require the government...
Host George Stephanopoulos interrupted, “So what would you do now?”
Graham responded, “I -- I would not take off the idea of nationalizing the banks.”
Waters told Stephanopoulos that “the word ‘nationalization’ scares the hell out of people. And so the debate has been opened up now, and that's good. Let's talk about it.”
Water also noted that the U.S. government owns “more and more” of the banks, with Citibank “probably almost nationalized with the amount of money that we’ve put in. But I don't think that we are ready to move to the point of a formalized nationalized banking program yet,” Waters said.
“Even if it's the only thing that will work?” Stephanopoulos asked Waters.
“Well, we may get to that point, the California Democrat replied. “And I'm not opposed to that. But I think the discussion is just opening up. This is new for America.”
Sen. Chuck Schumer (D-N.Y.) told Stephanopoulos, “I would not be for nationalizing.” Schumer said the government is not good “at making these decisions as to who gets loans and how this happens.”
Schumer said he disagrees with a one-size-fits-all approach to the banking industry. While some banks may need capital injections, others may need to have bad assets taken off their balance sheets, he said.
“We're going to examine each bank that has trouble and see which policy meets their needs,” Schumer said. “Sometimes it'll be capital injections. Sometimes it'll be bad assets. Sometimes it'll be something else. That makes sense,” he said. Schumer also raised the idea of the Federal Reserve using its own capital to bolster the lending markets.
Republican Rep. Peter King of New York said that he and Schumer “are somewhat on the same page here on this. And Lindsey and Maxine are almost on the same page, which -- I don't know what this means about the world.”
“You may have to edit this program,” Graham joked.
“A new kind of bipartisanship,” host Stephanopoulos said.
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“Let’s talk” about nationalizing the banks, Rep. Maxine Waters (D-Calif.) said on ABC’s “This Week.” But she also said the nation is not ready to “move to the point of a formalized nationalized banking program yet.”
Rep. Sen. Lindsey Graham (R-S.C.), who appeared on “This Week” with Waters, said the nation’s banks are in so much trouble, “We’re going to have to do something that no one ever envisioned a year ago, no one likes.”
Graham said he would not drop the idea of nationalizing the banks:
“Yes, this idea of nationalizing banks is not comfortable, but I think we have gotten so many toxic assets spread throughout the banking and financial community throughout the world that we're going to have to do something that no one ever envisioned a year ago, no one likes -- but, to me, banking and housing are the root cause of this problem. And I'm very much afraid that any program to salvage the bank is going to require the government...
Host George Stephanopoulos interrupted, “So what would you do now?”
Graham responded, “I -- I would not take off the idea of nationalizing the banks.”
Waters told Stephanopoulos that “the word ‘nationalization’ scares the hell out of people. And so the debate has been opened up now, and that's good. Let's talk about it.”
Water also noted that the U.S. government owns “more and more” of the banks, with Citibank “probably almost nationalized with the amount of money that we’ve put in. But I don't think that we are ready to move to the point of a formalized nationalized banking program yet,” Waters said.
“Even if it's the only thing that will work?” Stephanopoulos asked Waters.
“Well, we may get to that point, the California Democrat replied. “And I'm not opposed to that. But I think the discussion is just opening up. This is new for America.”
Sen. Chuck Schumer (D-N.Y.) told Stephanopoulos, “I would not be for nationalizing.” Schumer said the government is not good “at making these decisions as to who gets loans and how this happens.”
Schumer said he disagrees with a one-size-fits-all approach to the banking industry. While some banks may need capital injections, others may need to have bad assets taken off their balance sheets, he said.
“We're going to examine each bank that has trouble and see which policy meets their needs,” Schumer said. “Sometimes it'll be capital injections. Sometimes it'll be bad assets. Sometimes it'll be something else. That makes sense,” he said. Schumer also raised the idea of the Federal Reserve using its own capital to bolster the lending markets.
Republican Rep. Peter King of New York said that he and Schumer “are somewhat on the same page here on this. And Lindsey and Maxine are almost on the same page, which -- I don't know what this means about the world.”
“You may have to edit this program,” Graham joked.
“A new kind of bipartisanship,” host Stephanopoulos said.
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