HuffPost Contest: Name That Bank Seizure

Republican Sen. Lindsey Graham of South Carolina stunned political observers on Sunday when he said that "the idea of nationalizing banks" must be kept on the table, even if it makes him "not comfortable."

Moments earlier, Rep. Maxine Waters (D-Calif.), who agrees with Graham, lamented that "the word 'nationalization' scares the hell out of people."

Indeed, many who support a policy of 'nationalization' say the term is neither an accurate description of the policy nor politically helpful. (For more, read Arianna's recent column, "Why is Obama Reluctant to Kill the Zombie Banks Threatening Our Economy?")

So what should 'nationalization' be called instead?

To enter our name-that-bank-seizure contest, drop your suggested replacement term in the comments section. We'll highlight the best suggestions in a post later this week and, and use the winner when referring to nationalization. As more economists argue that nationalization is increasingly a matter of when rather than if, it's a reference that will be popping up with rising frequency.

Economists Matthew Richardson and Nouriel Roubini entered their own suggestion on Sunday in a Washington Post op-ed. "Nationalization -- call it 'receivership' if that sounds more palatable -- won't be easy, but here is a set of principles for the government to go by," they write. But we can't see 'receivership' catching on. And what would the headline read? Feds Receive Bank?

One flaw of the term nationalization is that it doesn't convey the temporary nature of a government takeover of a bank. Nationalization implies that the government will seize and keep the institution, but the process is more a catch and release. The government seizes the bank on a Friday afternoon, guarantees deposits, reopens on Monday as it goes through the books and determines whether it can be made viable again. If it can, it's gradually sold off -- often in pieces -- bank into the private market.

What should that be called?

UPDATE: Here are a few early suggestions, pulled from the comments section. Several readers noted that the FDIC uses the term "intervention."

Intervention
Federalization
Detoxification
Reorganization
Sequestration
Quarantine
Repossession
Consolidated Federal Financial Reorganization Program (CFFRP)
Assimilation
Emergency Public-Private Partnership
Recommecialization
Cleanse
Rejuvenation
Bank Underwriting & Recapitalization Project (BURP)
Restructured Ownership And Rehabilitation (ROAR)

Comments

[Miles Mogulescu - Huffpost Blogger]

"Financial Foster Care"--Americans always like seeing abused children properly taken care of
So, you take abused children (the American financial system) away from their abusive parents (Wall Street Bankers), put them in temporary foster care with caring families (new management installed by the goverment to be sure they are taken care of in the best interests of the taxpayer), and once they've recovered from the trauma, have them adopted by new loving parents with the financial wherewithal to take care of them (i.e. new private investors and new management).

[IthacaParent]

Bank Welfare Reform- requiring that banks which receive public assistance (whether food stamps, TARP$, FED loans on sweetheart collatteral valuations, etc.) must first use their own assets (savings, shareholder equity, bonuses) and submit a 'family budget' for 'Bank Social Services' approval (no stadium naming contracts and zero political donations, etc.) before future taxpayers assume financial liability for their mistakes.

More important, stipulate no dividends to common or current preferred shareholders until the taxpayers are repaid in full. Bonuses payable only in restricted common stock, also worthless until taxpayers repaid in full. This isn't rocket science folks.

[HardheadedLiberal]

I think Exorcism fits the bill. After all, wasn't all this caused by the toxic assets from hell?

[jbsmathers]

What should it be called when the government steps in to protect depositors when a bank fails due to poor management? Have we not been calling this FDIC Insurance since the new Deal. Why not say the bank has failed and its depositors have become recipients of FDIC insurance, and the people who buy the banks remaining good assets from the FDIC to form a new bank, can call that new bank whatever they want. Is this really so complicated its been going on every year for 60 years without fuss.

For those of you angry at those who enriched themselves by their "poor management", here is a novel idea. File a personal class action suit against every individual in management of a failed banks, with the goal of recovering all their personal wealth and turning it over the the treasury to reduce the debt. If tobacco can loose civil suits, after dastardly deeds, why not investment bankers...­..

[peterbfield]

Just change one letter in 'nationalization':

rationalization

[helen]

Purification

Deliverance

Exorcism

[WindyW]

Inoculate

Revivify

Rejuvenate

Galvanize

... and one that sounds too negative, but makes me laugh:

Unglomerate

[maxfax]

Financial Implemental Nationalization Guaranteed Equity Restructurting

or FINGER for short.

[baxtron]

Federal Repossession Extraction Enterprise (FREE)
or

Ruin America by Reorganizing While Exposing Fraud and Being Honest with Borrowers Plan

(RARWEFBHBP)

[vinkeith]

Nationalization = (CRAP) Consolidated Re-Affirmation Program

[stevemarvin]

Instead of being Nationalized the banks are being Rationalized.

[stevemarvin]

FEDuciary

[CaptainHowdy]

How about calling it what it really is... THEFT

Or perhaps... FRAUD

[not going2take it]

The Benny You-over Plan

The Ben Dover - Ann Dover Plan

(my weak attempts)

[docr20041]

The proper word for the alleged "Nationalization" of the Federal Reserve Banks is Madoffization of each Ponzi Fiat Bank. WHY make the taxpayers pay for the debts of the multiple Madoff-Banks!! He who loans what isn't his'n must pay it off or go to prison. They KNOWINGLY loaned fictitious money. The innocent taxpayers cannot be saddled with their knowing FRAUD. They did it for ill got gain, therefore they have earned the pain in their assets!! So there, Docr20041