The US Treasury Department has rejected market rumors of impending nationalization of troubled banks, reiterating that its policy is aimed at preserving a private financial system.
In response to a question about the bank nationalisation rumors that swept Wall Street yesterday, battering the financial sector, a Treasury spokesman said: "There are a lot of rumors in the market, as always, but you should not regard these as any indication of the policy of this administration."
The spokesman recalled that Treasury Secretary Timothy Geithner had made clear that the administration would work to keep the embattled financial system in private hands.
"As Secretary Geithner has said, we will preserve a financial system that is owned and managed by the private sector," he said.