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Wednesday, February 25, 2009

Uncle Sam Bank not open for bank business, yet

By Emily Kaiser and Pedro da Costa - Analysis

WASHINGTON/NEW YORK (Reuters) - Just as Wall Street was coming to grips with the notion that bank nationalization might be inevitable, U.S. officials have come out strongly against an idea that strikes at the heart of America's capitalist model.

This does not mean the banks will escape Uncle Sam's grip. Many analysts predict that, with the economic outlook going from bad to worse, prospects are dim for reversing bank sector losses that have all but paralyzed global credit markets.

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