Nobody want to use the word “nationalization “ but is true the United States have to achieve this goal to save many bank institute.
The new politic will start with the Citibank Group, the state will take the 40 per cent, becoming in the senior partner of this bank.
With the desicion of the Treasure, banks as the Citibank or the Bank of America,hit by the global crisis, might come to the state even partially.
To not make a complete nationalization, the state will not take the the 51 percent, the take part will be between the 20 and 40 %,in some case that means to be the senior partner.
Its not a nationalization, if you get the write law, but in the real world, is a kind of nationalization.
As the statement says : the same dog with different neckle.
The Citigroup one of the most important problem is the know as “junk mortgages”. They just received a help by the treasure of United States of U.S. $ 45.000 million.
The value of the bank shares goes down in the worst one since 20 years ago.
The goverment of the United States says that every bank institution that needs this help will obtein it, bearing in mind that if allowed the bankruptcy of those banks or the devaluation of the shares these generate a total bankruptcy of the U.S. financial system already worst than exists now or the one of 1929.