Swedish bank rescue expert doubts US efforts will work

[katty]

more: http://www.usatoday.com/money/economy/2009-04-29-swedish-bank-expert-us-efforts_N.htm?csp=34
EXCERPT:

U.S. officials should confront the financial industry's political power and seize temporary ownership of troubled banks, Borg says. Otherwise, error-prone bankers will be bailed out at taxpayer expense.

"We can't let them get away with the fact that they've been reckless," Borg told a group of economists while attending the recent International Monetary Fund and World Bank meetings here.

During a crisis in the early 1990s, Sweden successfully rehabilitated its banking system via temporary nationalization. The government divided the industry into healthy banks and troubled institutions. It pumped capital into the healthy ones, while punishing their shareholders, and held onto the troubled assets until their values recovered.

[w4rma]

1. Exactly!!!!!! Argh! Summers and Geithner suck! (nt)

[Laelth]

2. Hear, hear! n/t

:dem:

-Laelth

[Demeter]

3. Error Prone? How About Criminal?

Fraud is a crime. So is extortion. The banksters did one, then the other.

[glitch]

7. My first reaction too. They were being overly diplomatic?

And by overly I mean ludicrously.

[bertman]

4. Recommend.

[Karenina]

5. I suppose it depends on your definition of "work."

[Dr.Phool]

6. Pretty hard to do here, when they own Congress.