Identifier
Created
Classification
Origin
09SAOPAULO186
2009-03-26 18:08:00
UNCLASSIFIED
Consulate Sao Paulo
Cable title:
MEDIA REACTION - GLOBAL ECONOMY: FINANCIAL CRISIS; SAO
how-toVZCZCXYZ0006 OO RUEHWEB DE RUEHSO #0186 0851808 ZNR UUUUU ZZH O 261808Z MAR 09 FM AMCONSUL SAO PAULO TO RUEHC/SECSTATE WASHDC IMMEDIATE 9061 INFO RHEHNSC/NATIONAL SECURITY COUNCIL WASHDC IMMEDIATE RUEHBR/AMEMBASSY BRASILIA PRIORITY 0205 RUEHRI/AMCONSUL RIO DE JANEIRO PRIORITY 9080
UNCLAS SAO PAULO 000186
SIPDIS
STATE INR/R/MR; IIP/R/MR; WHA/PD
DEPT PASS USTR
USDOC 4322/MAC/OLAC/JAFEE
E.O. 12958: N/A
TAGS: KMDR OPRC OIIP XM XR XF BR
SUBJECT: MEDIA REACTION - GLOBAL ECONOMY: FINANCIAL CRISIS; SAO
PAULO; OBAMA TRIES TO AVOID NATIONALIZATION; DOUBTFUL SUCCESS OF
PLAN TO CAPITALIZE BANKS IN U.S.
Title- Obama tries to avoid nationalization
Editorial in center-right Estado de S. Paulo (3-25) states: "The new
plan to capitalize U.S. bank is President Obama's last attempt to
solve the problem without having to resort to nationalization....For
the government this is a high risk moment. If it goes well,
President Obama will have solved a huge problem without having to
negotiate political support for nationalization. If it goes badly,
it will have compromised more money and will have wasted time and
maybe he, who will then be politically weakened, will need to
nationalize banks."
Title- Doubtful success of plan to capitalize banks in U.S.
Editorial in business oriented Valor Econtmico (3-25) says: "....The
indirect path was taken [in the U.S.] to by-pass two problems. The
first, a real one, was to avoid having to ask Congress for a hundred
billion more dollars that would be required if direct intervention,
nationalization [of banks] or more capital injection was chosen.
The second one, to avoid, under doubtful premises is for the State
to evaluate those assets...there are good chances that this plan
will not work. One of the bad signs given by the government was its
defensive attitude [in defense of the plan]."
WHITE