Sun, Feb 22, 2009 - Page 11 News List

No nationalization, US Treasury says

‘CREEPING NATIONALIZATION’ The government injected US$45 billion each into Citigroup and Bank of America, but the capitalization for each is less than US$20 billion


For Volokhin, it is “creeping nationalization.”

But the banks dismissed allegations of financial troubles.

A Citigroup spokesman highlighted the bank’s high Tier 1 capital ratio, a measure of financial strength and said it continues to cut assets on its balance sheet, reduce expenses and streamline its businesses for future “profitable growth.”

Scott Silvestri, a spokesman at Bank of America, echoed the view.

“We see no reason to nationalize a bank that is profitable, well capitalized and actively lending,” he said.

Also See: US stocks end at six-year lows after turbulent week

This story has been viewed 1781 times.

Comments will be moderated. Remarks containing abusive and obscene language, personal attacks of any kind or promotion will be removed and the user banned.

TOP top