What is Nationalization of Banks?

[CrunchyDoula]

Can anybody explain this to me and what it means?

[Denvergirlie]

The government takes control and ownership of a privately held company. The government is now responsible for any debts on the books, as well as have control over future operations. However, the government now holds this bad debt, which means you and me the taxpayers have yet more debt, it socialises the loss.

When they seize control, the orginal owners may or may not get fair value for thie company. For example if today the shares of Bank of America are trading at $10 a share on the stock market, the government can choose what if anything they are going to pay the stockholder for their share. They could pay out the full $10, or maybe only $5 or maybe nothing. Kind of like a hostile takeover.

US Postal service is nationlised service. Airport security was nationlised after 9-11 where as those used to be private companies.

I normally would never direct anyone to Wikipedia, but this one is fairly accurate.
http://en.wikipedia.org/wiki/Nationalization