Sunday, April 19, 2009

Why the nationalization of the banks would be a good idea

Basically, because that's the only way that things like executives giving themselves multi-million dollar bonuses after their companies have had to be rescued will not happen. One of the most anger inducing headlines I've read recently said that lots of the TARP money was flowing back into Washington in the form of political donations to the Republicans. Banks, the people whose greed got us into this situation, along with AIG and hedge funds, cannot be trusted to use the money that they get in an honest way. To ensure that real change happens and that no fraud occurs there needs to be a level of direct involvement by the government in the administration of the banks that can only be accomplished through nationalization. Only by taking over the banks will the government truly be able to restructure them and create a measure of honesty within them. The government needs broad authority to fire executives, discipline executives and other managerial workers, and the ability to do this without the companies doing an end run around the legislation and actions, sabotaging and undermining them.

1 comment:

Anonymous said...

re: "because that's the only way that things like executives giving themselves multi-million dollar bonuses after their companies have had to be rescued will not happen."

Another way to achieve the same goal might be to not rescue failing companies.