Jon Kyl Agrees With Barney Frank Regarding Bank Nationalization

Republican Senator Jon Kyl and Democratic House Financial Services Committee Chairman Barney Frank remain on opposite sides of the spectrum when it comes to legalizing online gambling.  Kyl calls the activity "the crack cocaine of gambling" and forced through a bill to prohibit certain forms of Web gambling back in 2006.  Frank this weekend announced plans to repeal Kyl's co-authored legislation, the Unlawful Internet Gaming Enforcement Act (UIGEA).

But when it comes to bank nationalization, the two are playing on the same team.

"I don't think it's something the market has to worry about," Kyl, the second-ranking Republican and a member of the Finance Committee, said today in a telephone interview with Bloomberg News. "There are plenty of tools that we have short of that to deal with the crisis."

Barney Frank said "bank nationalization ought to be avoided", echoing the sentiments of the Obama administration, which said a "privately held" banking system is the "correct way to go".

Senate Banking Committee Chairman Christopher Dodd said on Friday that banks may have to be nationalized for "a short time" in order to help rescue lenders such as Citigroup Inc. and Bank of America Corp. survive the worst economic crisis in 75 years.

"I don't welcome that at all, but I could see how it's possible it may happen," Dodd said today on Bloomberg Television's "Political Capital with Al Hunt" to be broadcast this weekend. "I'm concerned that we may end up having to do that, at least for a short time."

The banking industry said speculation about government intervention was hurting investors and eroding consumer confidence in banks.

Jagajeet Chiba, Gambling911.com Business