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

AFP , WASHINGTON

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

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