A pile of dog crap by any other name...

Reid: Don't call it nationalization
Lisa Lerer
Mon Feb 23, 9:42 am ET

Senate Majority Leader Harry Reid said he supports efforts of the federal government to dramatically expand its stake in Citigroup, but wants people to back off from the dramatic rhetoric.

“It’s not nationalization, it’s protecting the taxpayers’ interests,” Reid (D-Nev.) told MSNBC’s Morning Joe program on Monday.

“In the bailout, the TARP, that we made sure the American taxpayer had a way of getting paid back for their investments,” Reid said. “That’s what this is all about and it’s the right way to go.”

The federal government is in talks to take as much as a 40 percent stake in the struggling bank’s common stock, the Wall Street Journal reported on Sunday.

Republicans have criticized Democrats for moving closer to bank nationalization – something White House Press Secretary Robert Gibbs signaled that the administration signaled would oppose on Friday.

“My main concern is that Washington is sending mixed signals to Wall Street, which is causing private capital to remain on the sideline," said Rep. Scott Garrett (R-N.J.), a member of the House Financial Services Committee. "Until investors are clear about the government’s intention with regard to future market interference, confidence will not be restored to the financial sector.”

The idea, reported the Journal, was originally proposed to the government by Citigroup. On Sunday, Treasury spokesman Issac Baker indicated to Politico that the administration would seriously consider the proposal.

“We are open to considering a request to [convert preferred stock to common shares] if the institution and its regulator believe it would promote the long term stability of that institution, and if we believe it's in the best interest of long term stability of our economy and financial system."

Nationalization news here