managing director Bill Gross
has voiced his opposition to the idea of nationalizing banks.
"Regulators are overwhelmed as it is, and if you thought Lehman Brothers was a mistake, just standby and see what nationalizing Citi or BofA would do," Gross stated in his March investment outlook.
"The goal of future policy should be to recapitalize lending institutions while maintaining the basic infrastructure of credit markets. Outright nationalization and haircutting of creditors will do just the opposite," he added.
Gross' March investment outlook takes the form of a hypothetical Q&A session between himself and members of a congressional subcommittee.
"One things I've never done... is provide expert testimony in front of a congressional subcommittee," Gross said. "Newport Beach probably doesn't have the cachet of Wall Street or perhaps my style has always been a little irreverent or my brain a little irrelevant -- I'm not sure. In any case, I thought I'd create my own virtual testimony to a hypothetical committee delving into the complexities of our financial crisis.
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