The US government may have to temporarily nationalise some banks to fix the financial system and restore credit flows, former Fed chairman Alan Greenspan told the FT. Temporary nationalisation could be the least bad option left for policymakers, he said Tuesday, noting it would allow the government to “transfer toxic assets to a bad bank without the problem of how to price them.” His remarks capped a frenetic day in which US policymakers appeared to be moving towards accepting some form of bank nationalisation.

This entry was posted by Gwen Robinson on Wednesday, February 18th, 2009 at 5:36 and is filed under Capital markets, People. Tagged with alan greenspan. Edit this entry.