Barney Frank is in the unusual position of being the voice of reason this weekend, countering Chris Dodd’s suggestion that some major US bank’s may need to be nationalized “for a short time”. Nationalization is one of those concepts without gray areas: nationalizastion wipes out the vast majority of shareholder value and its looming possibility keeps bank shares plumbing the depths and eroding confidence across the financial markets. Perhaps if we had a comprehensive plan from the new administraion like we were told to expect 10 days ago, we wouldn’t be in this mess.
Frank says he doesn’t see the likelihood of nationalization, while Republican Senator Kyl, the second ranking Republican goes further, saying it is“out of the question” and isn’t going to happen.
