Will United States be forced to nationalize banks?

 

Assalam-o-Alaikum
http://www.reuters.com/article/newsOne/idUSTRE50F1KI20090116

NEW YORK (Reuters) - The U.S. government's latest bank rescue, this time a multi-billion dollar lifeline handed to Bank of America, has led to more talk of what once would have been unthinkable -- European-style nationalization of major American banks.

Few see the government nationalizing the entire banking system the way Sweden did in the 1990s, but the U.S. is growing more willing to put significant pressure on the largest banks.

Over time, the government could exercise the same day-to-day control over major U.S. banks as with IndyMac Bank, a failed California thrift that the U.S. government operated for much of last year.

"We're nationalizing banks one at a time now. The real question is, will the biggest ones need to be nationalized?," said Roy Smith, professor at New York University's Stern School of Business.

The U.S. banking system desperately needs capital. Estimates of the shortfall range from $700 billion to more than $2 trillion.

That money will not come from the private sector as long as the pending losses are all but impossible to estimate.

Without private investors bailing out the sector, whose functioning is key to reviving an economy mired in recession, the U.S. government will have little option but to step up.

In earlier stages of the meltdown, the United States tried to penalize investors to the smallest extent possible when it intervened.

When Bear Stearns & Cos Inc failed, the government brokered a deal that ultimately resulted in Bear shareholders getting money, while debt holders lost nothing.

After that deal, regulators got tough, and let Lehman Brothers Holdings Inc fail. Chaos ensued.

Two months later, when the market lost confidence in Citigroup, the government bought preferred shares and warrants, giving it exposure similar to owning shares without diluting shareholders.

The transition team of president-elect Barack Obama, who takes office on Tuesday, has said it will seek more concessions from banks seeking capital than the Bush administration did.

Lawrence Summers, director-designate of the National Economic Council, promised congressional leaders this week to limit dividend payments and executive compensation at banks that are bailed out.

And there are signs that Citigroup (C.N) is facing significant government pressure. It has sold off a stake in the brokerage business that Chief Executive Vikram Pandit said he "loved" just a few weeks ago.

And the bank broke with the rest of the industry and supported bankruptcy legislation that detractors say will give consumers an incentive to file for bankruptcy.  Continued...

Azfar

Quran 16:90 Allah commands justice, the doing of good, and liberality to kith and kin, and He forbids all shameful deeds, and injustice and rebellion: He instructs you, that ye may receive admonition.

 

Islam Teaches us Respect and then you can disagree

This debate or problem has nothing to do with her being women or anything. This issue is about the basic understanding of Islam and how it reached to you an me. People have given their lives to transmit this deen to us, we all need to show respect to all. Including Farhat Hashmi even if she is mistaken in some respects, in some ways other scholars in the history have made mistakes too.
I personally know her and her husband very good people and sincere but still human like all of us. If you read the fatwa it does not say that they are out of Islam or anything, only thing it says that there are some mistakes in the her understanding of some rulings of sharia. Believe me she is not only one who had this kind of thinking. So we keep her out now.
This issue is related to other broader issue which Ghalib mentioned in the mail that do you let all the people in world make their own operating systems or follow some commonly used operating system. We use intelect and rather reinventing the wheel all the time use the wheel and built on it. Although Islam is Opensource religion but you need to put more effort to understand the basic foundations of it.
But now a days this is a big issue more bigger out side Pakistan rather inside Pakistan.
So if we keep the Farhat Hashmi out of the debate and just talk on the underline Taqleed issue that will be more fruitful.
If you want to understand the underline issue you need to listen to this speech please take time and listen whole thing. In that speed again Molana mentioned Molana Modoodi, so be respectfull of both of them. Remember with all their short comming what they have achieved in Islmaic education we cannot even imagin to do.
Even if you do not follow but you will understand the point of view of your oponents.
http://www.sadiqeen.com/AzStuff/Usool/
http://www.sadiqeen.com/AzStuff/Usool/ImportantOfQuranandTaqleedbyMuftiSaeed.mp3
For more education listen
other in the same folder