Government Investment in Banks: Creeping Nationalization or Prudent, Temporary Aid?

Florida International University Law Review, Vol. 4, p. 209, 2009

UNC Legal Studies Research Paper No. 1594144

33 Pages Posted: 23 Apr 2010

See all articles by Lissa L. Broome

Lissa L. Broome

University of North Carolina School of Law

Abstract

This Article explores government investment in banks and discusses some of the implications of the investments. In addition to detailing government bank stock investment during the current financial crisis, the article recounts the government’s prior extensive investment in preferred stock of banks during the Great Depression through the Reconstruction Finance Corporation and the government’s investment in one large bank, the Continental Illinois National bank, to prevent its failure in 1984. The implications of government investments in banks are explored first through the lends of history and then considering the current objections and concerns raised about creeping government nationalization of banks.

Suggested Citation

Broome, Lissa L., Government Investment in Banks: Creeping Nationalization or Prudent, Temporary Aid?. Florida International University Law Review, Vol. 4, p. 209, 2009; UNC Legal Studies Research Paper No. 1594144. Available at SSRN: https://ssrn.com/abstract=1594144

Lissa L. Broome (Contact Author)

University of North Carolina School of Law ( email )

Van Hecke-Wettach Hall, 160 Ridge Road
CB #3380
Chapel Hill, NC 27599-3380
United States
919-962-7066 (Phone)
919-962-1277 (Fax)

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