Since we've effectively nationalized the damn things anyway let's just go with a national bank.
(and yes, I am conversant with the politicization of the 1st and 2nd Bank's of the United States)
There is talk by the Federal Reserve, the U.S. Treasury, the U.S. Congress and bankers about creating a "bad bank" and let the government use the next tranche of the bailout money to take the losses from the banks and put them in this bad bank.
First of all, why anyone would want to create something "bad" is beyond a rational person's comprehension. Why not create something "good." Why not take the second half of the TARP money and create a "good bank,"one that is solvent, a bank that everyone can trust, a bank for the future not the past. If we create a "bad bank," there is no future. The money is just wasted again.
The "good bank" would start with $350 billion dollars of TARP money. Then all you need to do is to set a time period for everyone to transfer their assets into the "good bank," if they choose to do so. All deposits are insured by the FDIC. Then use this $350 billion dollar bank to refinance home mortgages at 4.25%, thereby giving Americans more money to spend and at the same time slowing down home foreclosures. These mortgages are federally insured....MORE