World Report

Governent May Take Part Ownership in Banks

By KHON News



The Bush Administration is thinking of taking part ownership in certain u-s banks, as an option for dealing with the severe global credit crisis.

This is coming from an administration official speaking on condition anonymity, because there has not been a decision made on the issue yet.

But that official says the rescue package gives the treasury department the power to inject fresh capital into financial intuitions...getting ownership shares in return.

Supporters of this approach say it would be good way to bolster banks' balance sheets and get them to start lending again.

"If the bank wins, if it survives, if it grows, the tax payer can sell off those stakes and not only get your money back and make a little bit of a profit on the deal," said David Wyss, senior economist at Standard & Poor's.

But critics of the plan say the government does not necessarily make a good banker.

They would rather see it as a temporary issue... not a permanent nationalization or partial-nationalization of the banking system.

"If the economy continues to go the way it is going and if they are the only ones that can help us to get out of this slump then i would agree to do anything we can to get us back on top," said Erskine Shoulars.

Taxpayers have mixed feelings on the idea.

"I think that when they had a little bit more control, things were a little bit better. So I think that's kind of when the greed took over more or less when the government gave up a lot of that control," said Karen Whiteside.

"The banks should be able to run themselves, but they've also been allowed to run amuck," said Ian Twine.

The stock market opened up this morning after hearing news of the possible Bush plan but at the end of the day it took another nose dive.

The Dow dipped below 9,000 for the first time since 2003.

Weather

Icon
Honolulu 84 °F
A Few Clouds
Wind : From the East at 15 MPH
Humidity : 51 %
Lihue 78 °F
Molokai 81 °F
Lanai 76 °F
Kahului 83 °F
Hilo 80 °F
Kona 82 °F
More Weather

Weather

On Demand

AP Video

Cast Your Vote

SHOULD TEXT MESSAGING WHILE DRIVING BE BANNED?

  • Yes
  • No
Oprah photo