The head of the U.S. Federal Reserve once again rejected the idea of nationalization of Citigroup

25.02.2009

Chairman of U.S. Federal Reserve Ben Bernanke (Ben Bernanke) once again rejected any speculation that the government can nationalize Citigroup and other big banks, the Associated Press.

When he raised the matter at a hearing on Citigroup in the U.S. Senate Banking Committee, Bernanke said that the nationalization is "when the Government seizes the bank and devastate its shareholders ... we do not plan anything like this."

However, Bernanke did not reject the possibility that the government could eventually take a much larger share of the Citigroup and other big banks.

In the case of Citigroup Bernanke will look like will be a new so-called "stress test" that regulators will be conducted in all major U.S. banks to assess their ability to survive in a protracted recession.