Banks Cede Control to Governments

Defacto nationalization is happening in many countries around the world. This will have far reaching consequences as to how banks operate in the future. A private banking system as a key ingredient to sustained econommic growth.Lou

*U.S. govt to own up to 36 pct of Citi after stock deal

* Over $30 billion committed to central, east Europe banks

NEW YORK/WASHINGTON, Feb 27 (Reuters) - Governments increased their control over crippled banks in Europe and the United States on Friday in a bid to halt an ever-worsening crisis and kickstart growth worldwide.

The U.S. economy shrank a shocking 6.2 percent in the last three months of 2008, its biggest slide in more than a quarter century as exports fell and consumers cut spending. For details, see [ID:nN26343320]
"It's just doom all over," said Boris Schlossberg, director of currency research at GFT Forex in New York. "There's nothing good to take away from this report. The only thing is there's no good news on the other side of the Atlantic, either."

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http://www.reuters.com/article/marketsNews/idINSP45925120090227?rpc=44&sp=true