Archive for February 21st, 2009

Schumer Makes A Bold Statement… Or Does He?

Chuck Schumer appears to support nationalization of failed banks:

Sen. Charles Schumer (D-N.Y.) believes that failed “zombie” banks, no matter what their size, should be taken over by the government, which should then wipe out shareholders, fire management, clean up the banks and quickly resell them into the marketplace. Such a move, he cautioned, should come only if the “stress tests” being conducted by Treasury Secretary Timothy Geithner determine a bank to be insolvent.

I think that trillion-dollar “if” is the key here.  Does Schumer believe that any significant banks will actually flunk Geithner’s stress tests, or is he just bluffing?  It’s easy to talk big when you know you’ll never get called on it.  Which is why I wonder whether Schumer (traditionally one of Wall Street’s BFFs in the Democratic caucus) has some kind of inside information that the fix is in, and the stress tests will just be a whitewash to shore up confidence in the financial sector.

Not that I’m cynical or anything.

February 21st, 2009 at 01:04pm Posted by Eli

Entry Filed under: Democrats,Economy,Politics


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