Governments Race To Nationalize Banks Amid Global Meltdown

Thursday, January 22, 2009 | Tag Cloud

By Rodney Drinnen

SPOKANE, WASHINGTON (Worthy News) -- Cheer, hope, and optimism seemed the main emotions during the historic inauguration of President Barack Hussein Obama as the United States' first African-American president.

Yet, at Wall Street in New York, investors weren’t celebrating, as governments around the world tried to shore up their financial systems by taking over banks in what critics warned were ill-advised measures to prevent further economic meltdown in their countries.

The Dow Jones showed its worst performance of any Inauguration Day for the last 124 years, while Japan’s Nikkei, Britain’s FTE, Germany’s DAX, and France’s CAC-40 indexes also declined.

In New York, traders would pause at times to view the inauguration ceremony, and to see what  newly elected President Obama would say about the U.S., and global, economy. Apparently not enough. The Dow fell below 8,000, and bad financial news emerged from countries around the world.

The British government, which already injected money into the Bank of Scotland on Monday, January 19, suggested more steps would be needed.


The move, increasing the state's role in the British economy, came after Washington assisted Citigroup Inc. and Bank of America, to prevent the bankruptcy of institutions, once viewed as darlings of the financial world.

Bank of America received about $25 billion in capital injections from the Treasury bailout fund, the Troubled Asset Relief Program, or TARP. That includes $10 billion for Merrill Lynch & Co., which Bank of America bought on New Years' Day.

Citigroup was, at least briefly, rescued late last year, receiving a $20 billion capital infusion from TARP, after earlier obtaining $25 billion — as well as government backing for billions in risky assets held by the troubled bank.

Across the ocean, Ireland's parliament voted to complete the nationalization of Anglo Irish Bank, the country’s third largest, in a second round of government bailouts.

Analysts said the latest moves seemed part of efforts by governments  worldwide to eventually nationalize key banks and other financial institutions.

Brian Gardner, senior vice president for Washington research at investment bank Keefe, Bruyette & Woods, told the Washington Post newspaper that these developments "underscored the need for Obama to set his sights on repairing the banking system, before turning his attention to a broader economic stimulus package."


He stressed the president should urgently fix the financial system. "This all started from a crisis in the financial system, and it’s going to be solved by fixing the financial system," Gardner was quoted as saying.

The Obama administration has suggested creating a state-owned "bad bank" that would buy up loans and other troubled assets, seen as major causes of the financial crisis, and sell them later at what analysts fear will be a "substantial loss".

Several other countries created such banks, including Sweden, to  revitalize lending. Yet, "bad banks" have never been tested on a scale proposed by the Obama administration.

Officials say it is likely that Obama's bank plan will require more than the roughly $320 billion remaining in the financial rescue program approved by the U.S. Congress last fall.

Financial advisers warn that many bank nationalizations can be expected as the U.S. and other governments struggle to overcome the world's worst economic crisis in decades.

The financial crisis is one of the biggest challenges faced by President Obama, who has appeared more somber in recent days. He already aknowledged that the road to recovery would "not be easy," but said he remained hopeful of a better future for America, and the world.

Copyright 1999-2018 Worthy News. All rights reserved.
Fair Use Notice:This site contains copyrighted material the use of which has not always been specifically authorized by the copyright owner. We are making such material available in our efforts to advance understanding of environmental, political, human rights, economic, democracy, scientific, and social justice issues, etc. We believe this constitutes a 'fair use' of any such copyrighted material as provided for in section 107 of the US Copyright Law. In accordance with Title 17 U.S.C. Section 107, the material on this site is distributed without profit to those who have expressed a prior interest in receiving the included information for research and educational purposes. For more information go to: If you wish to use copyrighted material from this site for purposes of your own that go beyond 'fair use', you must obtain permission from the copyright owner.

9 thoughts on “Governments Race To Nationalize Banks Amid Global Meltdown”

  1. they should have jsut distributed the money to the american people. a cool million a piece to pay off our houses (that would have fixed the housing market) paid off our cars ( that would have fixed the auto market) and splurge and buy all the senseless things americans need (entertaiment, clothes, appliances) that would have saved the businesses, or wal street. man i tell ya, the people in charge are either stupid or smart. either they want to globalize the banking industry or they really didnt think about the People they are suppose to represent.

    • wow, I think your idea is a good one. do you feel like we are frogs in a nice warm pot of water soon to be boiling? I do. I think this is the time when we are to begin looking - "28 Now when these things begin to happen, look up and lift up your heads, because your redemption draws near.” Luke 21:28

      I know all of this has to happen, but it is a little bittersweet. Thanks for your insight, I enjoyed reading your wise advice"!

  2. Gold Will Fail

    "In that day a man shall cast his idols of silver, and his idols of gold, which they made each one for himself to worship, to the moles and to the bats; To go into the clefts of the rocks, and into the tops of the ragged rocks, for fear of the LORD, and for the glory of his majesty, when he ariseth to shake terribly the earth." Isaiah 2:20-21

    God Will Not

    "If my people, which are called by my name, shall humble themselves, and pray, and seek my face, and turn from their wicked ways; then will I hear from heaven, and will forgive their sin, and will heal their land." 2 Chronicles 7:14


  3. Just as terrorism was used to put a human monitoring system in place without much objection, The economic collapse will be used to globalize the banking industry under government control. Hhhmmm.... Where have I heard about this before???? Oh yeah,, the book of Revelation concerning the Anti-Christ, A world governement, and not being able to buy, sell, or trade unless you denounce Christ and take the mark of the beast. Now that is food for thought!

    • Here we go!!!!!!! Everything is moving so fast it is hard to keep up with all that is going on. So many people are in a state of denial. It is so easy to get wrapped up in this stuff, and sometimes I just have to remind myself that the end result will be more magnificent than I could ever imagine or hope for.

      But as it is written: “ Eye has not seen, nor ear heard, nor have entered into the heart of man the things which God has prepared for those who love Him.” 1 Corin. 2:9

      [ I Am Coming Quickly ] He who testifies to these things says, “Surely I am coming quickly.” Amen. Even so, come, Lord Jesus! Rev. 22:20

      God bless -

  4. Nationalize Banks?? What?? This was done in 1913 with the Federal Reserve Act, and was hammered in place by the controlled "Depression of '29". The confiscation (stolen) of private individuals gold in banks along with the removal of the gold standard, to back our money. Final removal of the silver standard during the Kennedy administration. The Federal Reserve is private banking that operates under private law and is NOT a part of the US government. Ask yourself a question, who is the government in debt to?

Leave a Comment